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Answer: Appreciate
Explanation:
When a country increases interest rates, it will lead to an appreciation in currency. This is because there will be more demand for the currency of the country because people will want to take advantage of the higher interest rates and make a gain.
As the demand for the currency increases but the supply stays the same, the value of the currency will appreciate.
With Australia taking up their interest rates, their dollar will appreciate in value.
Answer:
The correct answer is option d.
Explanation:
The effficent market hypothesis is an investment theory which advocates that the stock prices reflect all the available information. As a result, stocks are always traded at their fair value.
The strong form of efficient market says that stock prices reflect all information whether public or private.
This implies that investors cannot have more than normal profits. In the above example, the investors are able to make profit through insider information. This means that the market is less than strong form efficient.
To maintain a strong Economy the federal government seeks to accomplish three policy goals stable prices , full employment and economy growth in addition to these three policy goals the federal government has other objectives to maintain sound economy policy
