linking questions

• how do higher interest impact the AUD

  When there are higher interest rates this mean that firms want to borrow from overseas (they will pay back less interest). As well high interest rates will reduce consumer spending therefore reduce imports which means that less money is going out --> supply factor = decrease in AS = AUD appreciates
• what happens to AUD when there is an increase in aggregate demand

  AUD appreciates
• what happens to AUD when there is a decrease in aggregate supply

  AUD appreciates
• what happens to AUD when there's a decrease in aggregate demand

  AUD depreciates
• what happens to AUD when there is an increase in aggregate supply

  AUD depreciates
• money coming into australia is a

  demand factor
• money going out of australia is a 


  supply factor
• who wants a low AUD

  firms in competing industries
• who wants a high AUD

  consumers as thing like going overseas becomes cheaper
• when the AUD appreciates this means

  that 1 AUD is worth more overseas dollars
• when the AUD depreciates this means that

  1 AUD is worth less overseas dollars