Hypothetical question about exchange rates (topic 2) (1 Viewer)

[luo_ge]

we just started exchange rates in school and i don't really fully understand the concept yet.

for example, i know that if the australian dollar appreciates the CAD deficit will increase and vica versa

i just have a question that i wanted to ask:

1. say australia has an exchange rate of 3% while japan has an exchange rate of 1%. what country would investors invest in and why?