Unit 3: International economics
4 dot points across 3 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.
Topic 2: Exchange rates and the balance of payments
A focused QCE Economics Unit 3 answer on the AUD and the BoP. Defines floating, fixed and managed regimes, draws the foreign exchange market, identifies the seven major determinants of the AUD, and explains the structure of the balance of payments with recent ABS data.
A focused QCE Economics Unit 3 answer on the terms of trade. Defines the terms of trade index, explains the price-driven and quantity-driven factors that move it, distinguishes an improvement from a deterioration, and analyses the effects on national income, the exchange rate, the current account and the Budget, with established Australian framing.
