1. If U.S. interest rates decline compared to the rest of the world, what would be the likely impact on the demand for dollars, supply of dollars, and exchange rate for dollars compared to, say, Philippine pesos? 2. If Philippines gets inflation under control and the Philippine inflation rate decreases substantially, what would likely happen to the demand for Philippine pesos, the supply of Philippine pesos, and the peso/U.S. dollar exchange rate?

1. If U.S. interest rates decline compared to the rest of the world, what would be the likely impact on the demand for dollars, supply of dollars, and exchange rate for dollars compared to, say, Philippine pesos? 2. If Philippines gets inflation under control and the Philippine inflation rate decreases substantially, what would likely happen to the demand for Philippine pesos, the supply of Philippine pesos, and the peso/U.S. dollar exchange rate?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 4SCQ: Suppose Argentina gets inflation under control and the Argentine inflation rate decreases...

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