2. 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.
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US investors are selling Malaysian stocks: When US investors sell Malaysian stocks, they are essentially converting their investments from Ringgit back to US dollars. This increases the demand for US dollars, shifting the demand curve to the right. Diagram: The Show more…
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