Answer to Question #66766 in Economics of Enterprise for orati

Question

Explain the internal and external effects of these downswings in our trading partner’s economies on real interest rates (r), income (Y) and the balance of payments in the South African economy

Answer 1

The downswings in trading partner’s economies will cause the decrease in real interest rates (r), decrease in income (Y) and decrease in balance of payments in the South African economy.