Answer to Question #156346 in Macroeconomics for Peeriya

Question #156346

If a local newspaper reported that the Malaysian government will shore up the sliding ringgit by working to cut record budget and trade deficits.

a) suppose that a reduction in the budget deficit made international investors more confident in the Malaysian economy. How would this increase in confidence affect the value of ringgit? How would it affect the trade deficit?


1
Expert's answer
2021-01-19T07:43:07-0500

The international investors will invest in various sectors in the country which will bring money to the country thereby increasing foreign exchange reserves too. Therefore the value of renngit will increase. Through the international investors the exports will increase thereby reducing the trade deficit.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS