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Show the Impact That a Relative Increase in Australian Interest

question 132

Essay

Show the impact that a relative increase in Australian interest rates will have on the exchange rate of Chinese yuan for dollars. Explain what this will do to the level of goods imported from China to Australia and discuss the effect it will have on Australia's current account.
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Definitions:

Equivalent Ratio

Ratios that express the same relationship between numbers, even though they may look different.

Smallest Term

The term within a mathematical expression, sequence, or series that has the least value.

Ratio

A mathematical representation of the relationship between two numbers or quantities, indicating how many times one is as large as the other.

Lowest Terms

The expression of a fraction in its simplest form, where the numerator and denominator are as small as possible.

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