Answer to Question #160487 in Microeconomics for SKY

Question

Exchange Rates market. Use a separate diagram to show how each of the following factors affect demand or supply for “US dollar”? (assume price of US$1 is RM4 ringgit (put Price of USD on y-axis and Quantity of USD on x-axis):

a. US investors are selling Malaysian stocks 

b. U.S. firms buy large quantity of palm oil from Malaysia.

c. More Malaysians travelling to US for studies and holiday.

d. Increased popularity of US made goods in Malaysia.

Answer 1

a.

b.

c.

d.