What effect do rising interest rates have on value of dollar, Microeconomics

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What effect do rising interest rates have on value of dollar

(a) Why could low interest rates undermine the economy?

(b) Why did the RBA put up interest rates?

(c) Use an AD/AS diagram to show the effects of the government's fiscal stimulus on real GDP and the price level and how the change in the stance of monetary policy can reduce the inflationary consequences of the fiscal stimulus.

(d) What effect do rising interest rates have on the value of the Australian dollar? Use an AD/AS diagram to show the effects on Real GDP and the price level of an appreciating Australian dollar?

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Microeconomics: What effect do rising interest rates have on value of dollar

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Microeconomics: What effect do rising interest rates have on value of dollar

Reference No:- TGS075673

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