Business, 15.08.2020 18:01, devinmoore8686

The following are expected inflation rates and interest rate changes for the respective currencies:. Factor US Australia Malaysia
Currency Dollar Australian Dollar Ringitt
Change in interest rates -5% -3% -2%
Change in inflation rates -7% -4% +3%
Suppose the foreign exchange flows between the US and Australian, and Australia and Malaysia are primarily trade related, while flows between the US and Malaysia are predominantly financial in nature. Obtain predictions of the 3 exchange rate movements (e. predict the appreciation or depreciation of one currency against another)

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The following are expected inflation rates and interest rate changes for the respective currencies:....