经济学回答本节中一个问题.pdfVIP

SECTION A Answer one questionfrom this section. 1. Study the extract below and answer the questions thatfollow. The Australian dollar  The Australian dollar is very strong the United States (US) dollar and has reached its highest value the British pound and the euro s e 1992.  The world demand for coal, iron ore, an tural gas is rapidly reasing. Australia has these resources in abundance. This has led to an extraordinary boom in the construction of new mining facilities in Australia that is likely to run for at least 10 years. It has had a huge effect on domestic economic growth and has also threatened inflation.  With its stable economic outlook and high interest rates, Australia has proved to be a ma for foreign investors s e 2002, and this has had a significant impact on the exchange rate. The global surge in foreign direct investment and portfolio investment is a sign of international confidence in the economy but it has come ost, and with risks. The rise of the exchange rate has created hardships for domestic exporters of goods and services other than resources, and the tourist industry.  In the context of the resources boom, the high exchange rate helps to make the boom less inflationary. It also lowers the prices of imports for those consumers and businesses that buy them.  Structural change is occurring in the Australian economy as domestic firms adjust to a high Australian dollar. It creates pressure for resources – capital and labour – to shift from manufacturing and serv