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MBAX9122: Net demand and Net supply-Economics Assignment
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Internal code- MAS4373
Using the FX Loanable Funds model and your own research on the factors that influence both the net demand (CAB) and net supply (NFI) of Australian dollars, explain these movements in the USD/AUD exchange rate over this period.
Q2. Clearly explain what you believe is a plausible macroeconomic scenario for both the Australian and world economies over the next 5 years. Under this scenario, how would you expect the USD/AUD exchange rate to change over the next 5 years?
Economics Assignment
Question- Q1. The following diagram shows the number of United States Dollars that can be purchased with 1 Australian Dollar between December 2006 and June 2017.
Using the FX Loanable Funds model and your own research on the factors that influence both the net demand (CAB) and net supply (NFI) of Australian dollars, explain these movements in the USD/AUD exchange rate over this period.
Q2. Clearly explain what you believe is a plausible macroeconomic scenario for both the Australian and world economies over the next 5 years. Under this scenario, how would you expect the USD/AUD exchange rate to change over the next 5 years?