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1. Explain four types of unemployment
2. Explain the advantages and disadvantages of:(a) A flexible exchange rate regime(b) A fixed exchange rate regime
3. Suppose the Reserve Bank of Australia increases the interest rate. What happens to the supply and demand for Australian dollars? Does the dollar appreciate or depreciate? Explain with words and a diagram.
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This assignment is based on a questionnaire that efficiently explains the type of unemployment. four major types of unemployment have been discussed. The effect of fixed and flexible rate exchanges are of major concern in this present discussion. Where separately their advantages and disadvantages have been discussed elaborately. last question was based on the the reserve bank of Australia tendency to increase the rate interest, thereby affecting the demand and supply of dollar and simultaneously, its appreciation and depreciation was discussed. This assignment plays a significant role in understanding the concept of currency, which is the most important aspect of today's time.
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