An Increase in Indonesia's Income Relative to Malaysia's Should Result

question 112

Multiple Choice

An increase in Indonesia's income relative to Malaysia's should result in:

• A) an appreciation of the Indonesian rupiah relative to the Malaysian ringgit.
• B) a depreciation of the Indonesian rupiah relative to the Malaysian ringgit.
• C) an increase in the supply of ringgits in exchange for rupiahs.
• D) an increase in the demand for rupiah in exchange for ringgits.

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