Question

Article 4 - Why the RBA is loath to lift rates - Karen Maley. Date: 6 May 2017. http://bit.ly/2sdj94S

	4.1.	According to the article by Karen Maley, if Australian interest rates are raised, this is likely to push the Australian dollar higher. A likely explanation for this is:
		A.  Capital inflows fall and capital outflows rise, implying the demand for the AUD increases and supply of the AUD increases B.  Capital inflows fall and capital outflows rise, implying the demand for the AUD increases and supply of the AUD decreases C.  Capital inflows rise and capital outflows fall, implying the demand for the AUD increases and supply of the AUD decreases D.  Capital inflows rise and capital outflows rise, implying the demand for the AUD increases and supply of the AUD increases

Answer 1

4,19 : wishes in the soul running 4 / Sol:- Higher interest rates would be likely to discourage private sector investment, which is already running at low levels as a share of GOP answer : c ie, capital inflows rise and capital out flows fall, implying the demand for the aud increases and Supply of the Aun decreases at you