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I don\'t think it\'s fair people answer only part of the question Bc it goes aga

ID: 1219863 • Letter: I

Question

I don't think it's fair people answer only part of the question Bc it goes against our total question ask, and we do pay for a service that is not being provided so I'd appreciate if you answered the entirety of the question.

Supply won goes up or down? and Demand for Won goes up or down? For both first & second diagram. (That is all the info provided)

Fill ins, 1.) depreciate/appreciate 2.) appreciate/depreciate 3.) depreciate/appreciate 4.) depreciate/appreciate 5.) increase/decrease 6.) decrease/increase 7.) appreciate/depreciate 3. Changes in the foreign-exchange market Aa Aa The following questions focus on the exchange rate between the Malaysian ringgit and the South Korean won. Assume the exchange rate is flexible. The exchange rate is defined as the number af ringgit you must pay for one won. Suppose a recession in Malaysia causes Malaysian incomes to decrease, while incomes in South Korea remain th same. Shift the appropriate curve Korean won if all other things remain equal. or curves on the following graph to illustrate how this affects the market for South Tool tip: Click and drag one or both it snaps back to its original position, just try again and drag it a little farther. of the curves. Curves will snap into position, so if you try to move the curve and EXCHANGE RATE IRinggit per won) Supply of Won Demand for Won FOREIGN EXCHANGE

Explanation / Answer

A decreade in Malaysian income causes the South Korean won to depreciate realise to malaysian ringit and causes to Malaysian ringit to depreciate relatime to South Korean Won.

I am sorry as my system is not supporting the diagram.

A higher price level in South Korea causes the South Korean Won to depreciate relative to the Malaysian ringit.

Explanation-price level increase means inflation.Inflation causes currency depreciation and vice versa,deflation causes currency appreciation.

Suppose now that the real interest rate in Malaysia and South Korea are initially same .Then the real interest rate in Malaysia rises,while the real interest rate in South Korea remains the same.This will cause the supply of won to and the demand for won to deppreciate,which causes the Malaysian ringit to appreciate relative to south Korean won.

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