Identify whether each of the following would lead to an appreciation or depreciation of the dollar. In each case, explain why the currency either appreciates or depreciates.
a. Australian citizens switch from buying stock in Asian companies to buying stock in Australian companies.
b. The inflation rate in Australia increases relative to the inflation rate in neighbouring Asian countries.
c. Income in Australia increases relative to that in neighbouring Asian countries.

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The Answer of Identify whether each of the following would lead to an appreciation or depreciation of the dollar. In each case, explain why the currency either appreciates or depreciates.
a. Australian citizens switch from buying stock in Asian companies to buying stock in Australian companies.
b. The inflation rate in Australia increases relative to the inflation rate in neighbouring Asian countries.
c. Income in Australia increases relative to that in neighbouring Asian countries.

Identify Whether Each of the Following Would Lead to an Appreciation