Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During March-April 2022, the Malaysian Ringgit experienced a depreciation (i.e. the exchange rate increases, for example on 1/1/2021, the rate the MYR to USD exchange

During March-April 2022, the Malaysian Ringgit experienced a depreciation (i.e. the exchange rate increases, for example on 1/1/2021, the rate the MYR to USD exchange rate was 4.02, while on 30/4/22 it was 4.35) which is significant against several major trading partner currencies.

A. With the help of a diagram, explain why the depreciation occurs based on demand and supply analysis taking into account that many analysts mention that the decline NOT RELATED to the outflow of money (capital).

B. Explain the effect of the above.

Foreign trade (import and export) Malaysia., The welfare of Malaysian private students abroad, Current account balance & Direct foreign investment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Changing Resource Problems Of The World

Authors: Ronald G Ridker

1st Edition

131735494X, 9781317354949

More Books

Students also viewed these Economics questions