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Business, 05.12.2019 01:31 jose477

Consider the exchange rate between new zealand and tunisia. for each example, decide whether the scenario would tend to cause an appreciation, a depreciation, or have no effect on the new zealand dollar relative to the tunisian dinar. the economist magazine publishes an article indicating that analysts expect the value of the tunisian dinar to rise relative to the new zealand dollar. the central bank in new zealand raises interest rates on government bonds. according to a world bank report, the inflation rate in new zealand is going to be 1% next year, while the inflation rate in tunisia is going be 9.5%. the price of a specific basket of goods in new zealand is roughly 1.2 times higher than an identical basket of goods in tunisia, even after adjusting for the exchange rate.

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