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Social Studies, 23.07.2020 01:01 quetzaliescalona

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) According to the model in this chapter, would a reduction in the budget deficit reduce the trade deficit? Would it raise the value of the ringgit? Explain.
b) 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?

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