Identify Whether Each of the Following Would Lead to an Appreciation

question 53

Essay

Identify whether each of the following would lead to an appreciation or depreciation of the dollar. In each case, explain why the currency either appreciates or depreciates.
a. Australian citizens switch from buying stock in Asian companies to buying stock in Australian companies.
b. The inflation rate in Australia increases relative to the inflation rate in neighbouring Asian countries.
c. Income in Australia increases relative to that in neighbouring Asian countries.

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Definitions:

Reversion Interest

A future interest in real estate that reverts back to the original owner, or their heirs, once a particular condition has been met or a specified time has passed.

Prescriptive Easement

A right to use someone else's land, acquired by continuous and open use over a period as prescribed by law.

Boundary

A line or natural feature that marks the limits or borders of a property, territory, or jurisdiction.

Ejectment

The common law name given to the lawsuit brought by a landlord to have a tenant evicted from the premises.