Help with MC question. (1 Viewer)

[jky.]

Other things being equal, which action by the RBA could cause a depreciation of the $AUD against other curencies?
(a) Selling $AUD in foriegn exchange markets
(b) Selling foriegn currenc in foreign exchange markets
(c) influecing domestic money markets to raise interest rates
(d) Influencing domestic financial markets to lower securities prices

and

Which of hte following could be a consequence of an increase in real GDP?
(a) an increase in consump' and an increase in tax rev.
(b) a decrease to consump' and a decrease in tax rev.
(c) an increase in consumtion and a decrease in tac rev.
(d) a decrease in consumption and an increase in tac rev.


Please leave an explanation for the answer dat u choose. Thanx

 

[Demandred]

a) - By selling Aus $$, you increase the supply of Aus $$, thereby causing a depreciation in the exchange rate.

a) - As GDP grows, so does GDP per capita, meaning more consumption, since consumption is based on income, I guess they will be taxed more as well as people earn more income.

 

[KungPow]

Agreed for both answers

 

[jky.]

thx guys