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1. Higher interest rates in Malaysia attracted investor from the Philippines. How will this affect the demand for ringgit and the supply of peso in the foreign exchange market? O a. The demand for ringgit will increase and the ringgit will appreciate relative to the peso; the supply of peso will increase and the peso will depreciate relative to the ringgit. O b. The demand for ringgit will decrease and the ringgit will depreciate relative to the peso; the supply of peso will increase and the peso will appreciate relative to the ringgit. O c. The demand for ringgit will decrease and the ringgit will depreciate relative to the peso; the supply of peso will decrease and the peso will appreciate relative to the ringgit. Od. The demand for ringgit will increase and the ringgit will appreciate relative to the peso; the supply of peso will decrease and the peso will depreciate relative to the ringgit. 2. A contractionary monetary policy led to higher interest rates in the Philippines than in Malaysia. How will this affect the demand for peso and the supply of ringgit in the foreign exchange market? O a. The demand for peso will increase and the peso will appreciate relative to the ringgit; the supply of ringgit will decrease and the ringgit will depreciate relative to the peso O b. The demand for peso will decrease and the peso will depreciate relative to the ringgit; the supply of ringgit will increase and the ringgit will appreciate relative to the peso. O c. The demand for peso will decrease and the peso will depreciate relative to the ringgit; the supply of ringgit will decrease and the ringgit will appreciate relative to the peso. O d. The demand for peso will increase and the peso will appreciate relative to the ringgit; the supply of ringgit will increase

1. Higher interest rates in Malaysia attracted investor from the Philippines. How will this affect the demand for ringgit and the supply of peso in the foreign exchange market? O a. The demand for ringgit will increase and the ringgit will appreciate relative to the peso; the supply of peso will increase and the peso will depreciate relative to the ringgit. O b. The demand for ringgit will decrease and the ringgit will depreciate relative to the peso; the supply of peso will increase and the peso will appreciate relative to the ringgit. O c. The demand for ringgit will decrease and the ringgit will depreciate relative to the peso; the supply of peso will decrease and the peso will appreciate relative to the ringgit. Od. The demand for ringgit will increase and the ringgit will appreciate relative to the peso; the supply of peso will decrease and the peso will depreciate relative to the ringgit. 2. A contractionary monetary policy led to higher interest rates in the Philippines than in Malaysia. How will this affect the demand for peso and the supply of ringgit in the foreign exchange market? O a. The demand for peso will increase and the peso will appreciate relative to the ringgit; the supply of ringgit will decrease and the ringgit will depreciate relative to the peso O b. The demand for peso will decrease and the peso will depreciate relative to the ringgit; the supply of ringgit will increase and the ringgit will appreciate relative to the peso. O c. The demand for peso will decrease and the peso will depreciate relative to the ringgit; the supply of ringgit will decrease and the ringgit will appreciate relative to the peso. O d. The demand for peso will increase and the peso will appreciate relative to the ringgit; the supply of ringgit will increase

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. 2. Higher interest rates in Malaysia attracted investor from the Philippines. How will this affect the demand for ringgit and the supply of peso in the foreign exchange market? O a. The demand for ringgit will increase and the ringgit will appreciate relative to the peso; the supply of peso will increase and the peso will depreciate relative to the ringgit. O b. The demand for ringgit will decrease and the ringgit will depreciate relative to the peso; the supply of peso will increase and the peso will appreciate relative to the ringgit. O c. The demand for ringgit will decrease and the ringgit will depreciate relative to the peso; the supply of peso will decrease and the peso will appreciate relative to the ringgit. O d. The demand for ringgit will increase and the ringgit will appreciate relative to the peso; the supply of peso will decrease and the peso will depreciate relative to the ringgit. A contractionary monetary policy led to higher interest rates in the Philippines than in Malaysia. How will this affect the demand for peso and the supply of ringgit in the foreign exchange market? O a. The demand for peso will increase and the peso will appreciate relative to the ringgit; the supply of ringgit will decrease and the ringgit will depreciate relative to the peso O b. The demand for peso will decrease and the peso will depreciate relative to the ringgit; the supply of ringgit will increase and the ringgit will appreciate relative to the peso. O c. The demand for peso will decrease and the peso will depreciate relative to the ringgit; the supply of ringgit will decrease and the ringgit will appreciate relative to the peso. O d. The demand for peso will increase and the peso will appreciate relative to the ringgit; the supply of ringgit will increase and the ringgit will depreciate relative to the peso.
Transcribed Image Text:1. 2. Higher interest rates in Malaysia attracted investor from the Philippines. How will this affect the demand for ringgit and the supply of peso in the foreign exchange market? O a. The demand for ringgit will increase and the ringgit will appreciate relative to the peso; the supply of peso will increase and the peso will depreciate relative to the ringgit. O b. The demand for ringgit will decrease and the ringgit will depreciate relative to the peso; the supply of peso will increase and the peso will appreciate relative to the ringgit. O c. The demand for ringgit will decrease and the ringgit will depreciate relative to the peso; the supply of peso will decrease and the peso will appreciate relative to the ringgit. O d. The demand for ringgit will increase and the ringgit will appreciate relative to the peso; the supply of peso will decrease and the peso will depreciate relative to the ringgit. A contractionary monetary policy led to higher interest rates in the Philippines than in Malaysia. How will this affect the demand for peso and the supply of ringgit in the foreign exchange market? O a. The demand for peso will increase and the peso will appreciate relative to the ringgit; the supply of ringgit will decrease and the ringgit will depreciate relative to the peso O b. The demand for peso will decrease and the peso will depreciate relative to the ringgit; the supply of ringgit will increase and the ringgit will appreciate relative to the peso. O c. The demand for peso will decrease and the peso will depreciate relative to the ringgit; the supply of ringgit will decrease and the ringgit will appreciate relative to the peso. O d. The demand for peso will increase and the peso will appreciate relative to the ringgit; the supply of ringgit will increase and the ringgit will depreciate relative to the peso.
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