Applications of Supply and Demand - Part 2

Open Ended

RECAP: Summarized what have we discussed last meeting.

Open Ended

What do you think is the reason why majority of Filipinos choose to work abroad?

Open Ended

What is your major take away for the first half of this topic?

Open Ended

Governments have the power to print money through their central banks, but they have to balance the two contrasting objectives of economic growth and price stability. What would happen if the government prints too much money?

Multiple Select

SUPPOSE:

December 13, 2022: Php 50 = $1

December 14, 2022: Php 52 = $1

What happened to the value of dollar relative to the peso?

• The dollar appreciated or became more valuable relative to the peso.

• The peso depreciated or became less valuable relative to the dollar.

• The dollar depreciated or became less valuable relative to the peso.

• The peso appreciated or became more valuable relative to the dollar.

Multiple Select

SUPPOSE:

December 13, 2022: Php 50 = $1

December 14, 2022: Php 48 = $1

What happened to the value of dollar relative to the peso?

• The dollar appreciated or became more valuable relative to the peso.

• The peso depreciated or became less valuable relative to the dollar.

• The dollar depreciated or became less valuable relative to the peso.

• The peso appreciated or became more valuable relative to the dollar.

Multiple Choice

If the balance of trade is negative, the country imports more than it exports, we pay out more dollars than we receive, so that the demand for dollars _______.

• Increases

• Decreases

• No effect

Multiple Choice

If the balance of trade is positive, the country exports more than it imports, we pay out less dollars than we receive, so that the demand for dollars _______.

• Increases

• Decreases

• No effect

Multiple Choice

If the balance of trade is negative, the country imports more than it exports, we pay out more dollars than we receive, so that the supply for dollars _______.

• Increases

• Decreases

• No effect

Multiple Choice

If the balance of trade is positive, the country exports more than it imports, we pay out less dollars than we receive, so that the supply for dollars _______.

• Increases

• Decreases

• No effect

Multiple Choice

If the interest rate in PH Peso bonds is 6% and that for U.S dollar bonds is 2%, what is the interest rate differential?

• 4%

• 8%

• 6%

• 2%

Multiple Choice

An increase in the interest rate differential means that the Philippine interest rates rise further than the US. Investors exchange their dollars into pesos. What would happen to the demand and supply for dollars?

• Demand = decrease

  Supply = increase

• Demand = increase

  Supply = decrease

• Demand = increase

  Supply = no effect

• Demand = no effect

  Supply = no effect

Multiple Choice

If the peso is expected to depreciate against the dollar, people would not want to hold on to the peso and instead exchange it for dollars to preserve their purchasing power. This shifts the demand and supply curve to the ______.

• Demand Curve = Right

  Supply Curve = Left

• Demand Curve = Left

  Supply Curve = Right

Open Ended

What do you think is the difference between market for goods and market for housing?

Open Ended

In your own opinion, is there a shortage in housing in the Philippines? Explain your answers.

Open Ended

Now that you already know that there is really no shortage of housing in the country, what do you think is the long term solution for homelessness?