Posted: May 24th, 2016

Is it likely that the value of the Australian dollar would appreciate or depreciate versus the British pound, ceteris paribus?

Suppose that the average price of goods imported from Great Britain increased. Is it likely that the value of the Australian dollar would appreciate or depreciate versus the British pound, ceteris paribus? Is it likely that the average price in British pounds of goods exported from Australia to Great Britain would rise or fall?

7. Watch the following video clip (CPI: A surprise jump in inflation to a 2-year-high appears to have reduced the chances of further official interest rate cuts in Australia.) and answer the following questions.
link