A large increase in the income level in Philippines along with no growth in the Indonesia income level is normally expected to cause (assuming other factors are constant) a(n) ____ in Philippines demand for Indonesia goods, and the Philippines peso should ____. A. increase; appreciate B. increase; depreciate C. decrease; depreciate D. decrease; appreciate

A large increase in the income level in Philippines along with no growth in the Indonesia income level is normally expected to cause (assuming other factors are constant) a(n) in Philippines demand for Indonesia goods, and the Philippines peso should . A. increase; appreciate B. increase; depreciate C. decrease; depreciate D. decrease; appreciate

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter10: Measuring Exposure To Exchange Rate Fluctuations

Section: Chapter Questions

Problem 22QA

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