Draw a chart and explain in words what is expected to happen to the New Zealand...

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Finance

Draw a chart and explain in words what is expected to happen tothe New Zealand dollar demand and supply curves (USD/NZD) if thereis a forecast increase in New Zealand’s national income relative toa stable growth rate in the USA. Consider the following twoscenarios.
- An increase in the rate of growth in a country’s nationalincome relative to that in the rest of the world will result in adepreciation of that currency.
- An increase in the rate of growth in a country’s nationalincome relative to that in the rest of the world will result in anappreciation of the currency

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If increase in national income of any country will likely toincrease interest rate in that country Increase in interest ratewill appreciate the currency of that country vs the See Answer

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Draw a chart and explain in words what is expected to happen tothe New Zealand dollar demand and supply curves (USD/NZD) if thereis a forecast increase in New Zealand’s national income relative toa stable growth rate in the USA. Consider the following twoscenarios.- An increase in the rate of growth in a country’s nationalincome relative to that in the rest of the world will result in adepreciation of that currency.- An increase in the rate of growth in a country’s nationalincome relative to that in the rest of the world will result in anappreciation of the currency