quick multi question (1 Viewer)

[symo]

if RBA decreased cash rate
a) exports fall
b) $A depreciate
c) imports rise
d) trade deficit declines

well foreign inflows of savings will decrease thus $A depreciate, but increased economic growth = more imports,
so not a), not b) as it will worsen, i guess financial flows outweight trade flows so you would say b)? as more imports increase supply of $A - depreciate

 

[TastesGoodBut]

its B

demand for AUD will be less as foreign investors will not be incvvesting as much due to lower interest rates

 

[truly-in-bliss]

yeh datz lyk the other thread: the one abt exchange rate paradox or soemthing.