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But how is there greater demand then - there is in fact a contraction in demand according to the graph. If the answer was B, the demand curve would've shifted to the right.

Couldn't 7 be B then, cos discretionary spending to improve international competitiveness is long term compared to increasing interest rates, and the question is asking to reduce the impact of the change inToT between Yr1 and 2

Cos investors demand AUD, they can't affect supply 13) MPC = 90/150 = 3/5 MPS = 2/5 = 40 Therfore, MPC = 60 Y = (200+60) + (100+40) = 400

7 is not D (raising AUD would make exports even less competitive), it should be B 12 is C, as the government has taken on an expansionary stance and would reduce income tax, increase welfare benfits 14 is B (valuation effect, worsens CAD, increasing net foreign liabilities) I'm thinking 19 is C...

Woolworths entering DIY market (i.e. Bunnings) - anyone plan to work there when first store opens, wherever it may be?