Economics Assignment Help:
From The Article Titled ‘
Pound Continues To Fall Against Dollar Amid 'Hard Brexit' Fears’ (The Guardian, 11 October 2016), Answer The Following Questions. Note That Your Analysis Is Based On Pounds And Australian Dollar.
(A) Explain In Detail ‘Hard Brexit Fears’ [Not Exceeding 300 Words]
(B) Using Demand And Supply Model Of Exchange Rate Determination Briefly Explain How AUD Is Determined In The Forex Market, And What Factors Influence Its Fluctuations.
(C) Using Exchange Rate Data From Reserve Bank Of Australia And Graphs (Monthly Data Of Last Three Years) Analyse The Movement Of AUD Relative To That Of The Pound. Is It In Line With The ‘Hard Brexit Fears’ During This Period? Are There Any Other Factors Contributing To This Behaviour Of The Australian Dollar?
(D) Assume That You Are Exporting Alcoholic Beverages To Britain. Explain The Impact Of Sliding Pound On Your Income? What Advantages Do You Think Australia Will Have In Such A Scenario?
(E) What Action Could The Reserve Bank Of Australia Take In Order To Maintain The Exchange Rate At 0.60 Pounds, And What Side Effects Might This Action Have On The Australian Economy? Do You Think That Such Actions Would Be Effective?