ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question

Zeta Corporation is a Philippine Export
Company. It sells its goods to the US.
Assuming that the BSP prints more
Philippine peso bills, how will the
sales of Zetabe affected? 

A. The decrease in money supply will increase the value of each peso, require less peso to get one USD, hence Zeta's sales in peso will decrease.
B. The increase in money supply will increase the value of each peso, require less peso to get one USD, hence Zeta's sales in peso will decrease.
C. The decrease in money supply will lower the value of each peso, require more peso to get one USD, hence Zeta's sales in peso will increase.
D. The increase in money supply will lower the value of each peso, require more peso to get one USD, hence Zeta's sales in peso will increase.

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