Economics Malaysia and the United States trade with each other. The currency in Malaysia is the "ringgit". Currently the exchange rate is approximately 3 ringgit per US dollar. Suppose that the GDP deflator in Malaysia rises relative to the GDP deflator in the United States. Which of the following shifts would we see in the Malaysian forex market? The demand for US dollars would fall. The supply of US dollars would fall. The demand for Malaysian ringgit would rise. The supply of Malaysian ringgit would fall.

Economics Malaysia and the United States trade with each other. The currency in Malaysia is the "ringgit". Currently the exchange rate is approximately 3 ringgit per US dollar. Suppose that the GDP deflator in Malaysia rises relative to the GDP deflator in the United States. Which of the following shifts would we see in the Malaysian forex market? The demand for US dollars would fall. The supply of US dollars would fall. The demand for Malaysian ringgit would rise. The supply of Malaysian ringgit would fall.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Economics
Malaysia and the United States trade with
each other. The currency in Malaysia is the
"ringgit". Currently the exchange rate is
approximately 3 ringgit per US dollar.
Suppose that the GDP deflator in Malaysia
rises relative to the GDP deflator in the
United States. Which of the following shifts
would we see in the Malaysian forex
market?
The demand for US dollars would
fall.
The supply of US dollars would
fall.
The demand for Malaysian ringgit
would rise.
The supply of Malaysian ringgit
would fall.

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