Problem
1. Explain how the elasticity of demand for foreign exchange is influenced by the elasticity of home demand for imports and by the elasticity of home supply of import-competing goods.
2. Malaysia has just imposed exchange controls which are designed to make it impossible to move capital out of the country. What would you expect to happen to Malaysia's recorded current account results in the next year or so? Why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.