Answer:
to get 5,00,000 australian dollar at the forward rate we are goign to need 4,704,000 US dollars
Explanation:
spot x (1 + (US rate - Australia rate) x time)
0.96 x (1+(0.03-0.05)x1 year) =
0.96 x 0.98 = 0.9408 forward exchange rate
$5,000,000 Australian Dollar * 0.9408 = 4,704,000 US dollars
Answer:
Fiscal policy
Explanation:
Describes changes to government spending and revenue behavior in an effort to influence the economy. By adjusting its level of spending and tax revenue, the government can affect economic outcomes by either increasing or decreasing economic activity.
A.) How likely you are to pay them back