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?

YES.

Explanation:

Yes, if we low our expenses by lowering the budget, the trade deficit will automatically be reduced. The reason is that if we lower the imports by saving money due to low budget so the trade deficit will be reduced. Trade deficit occurs when the export are less than import. In other worlds, if a country earns less and spend more, this is known as trade deficit.

If a reduction in the budget deficit made international investors more confident in the Malaysian economy so these investors invest money in various sectors of the country and bring money to the country which increases foreign reserves and the value of ringgit increases and also increase the exports which decreases trade deficit.

the aksumite empire was an ancient kingdom located in what is now northern ethiopia from the period of 100 ad to 940 ad. its capital was the city of aksum. the kingdom established itself as one of the 4 great powers at its time, along with persia, rome, and china.

the kingdom was rich in goods like gold, iron, and salt. it established strong commercial ties with the regions governed by rome, egypt, and persia (arabia). aksum was a key location in this commercial network. trade was also facilitated with the introduction of the aksumite currency.

president reagan was a good presidant and should be presidant if he was still alive

explanation: