From the article titled ‘Is the Australian dollar
overvalued?’ (Sydney Morning Herald February 10, 2017), answer the
following questions. Note that your analysis is based on US Dollar (USD)
and Australian Dollar (AUD).(a) Briefly summarise the main issues
discussed in this article? [Not exceeding 300 words] – (20 Marks)(b)
Using Demand and Supply model of exchange rate determination briefly
explain how AUD is determined in the forex market, and what factors
influence its fluctuations. – (20 Marks)(c) Using nominal exchange rate
data and trade weighted index from Reserve Bank of Australia and graphs
(monthly data of last three years) analyse the movement of AUD relative
to that of the USD? Is it in line with the world commodity price
movement during this period? Are there any other factors contributing to
this behaviour of the AUD? – (25 Marks)(d) Assume that you are
exporting alcoholic beverages to United States. Explain the impact of
overvalued AUD on your income? What advantages/disadvantages do you
think Australia will have in overvalued AUD? – (15 Marks)(e) If the
market rate is US 76C then what action could the Reserve Bank of
Australia take in order to maintain the exchange rate at US 72C, and
what side effects might this action have on the Australian economy? Do
you think that such actions would be effective? – (20 Marks)Word Limit:
2000 words maximum. Word count (excluding references) must be provided.
Excess words will not be marked.
Which of the listed variables does a researcher mainly use in his or her approach with intent to establish validity - specifically, construct validity? · independent variable · confounding variable · dependent variable · participant variable · extraneous variable · third variable Instructions: With our engagement in this discussion we will likely touch upon learning objectives/competencies 2.2 and 2.4 as dependent upon the various variable selections and replies. (a) Please briefly define the two concepts (variable type(s) selected from the list and construct validity) using our text by Cozby and Bates (2015) or another credible source. (b) Then, support your view...
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