Answer to Question #104578 in Macroeconomics for Sithabile

Question

A.what type of event must happen for the exchange rate to change from R8:$1 to R9:$1and the amount of USD traded daily to increase 1.china starts producing cheaper goods than the united states 2.the gold price increase 3.more south africa tourists visit the united states 4.after a crime wave,American tourists cancel their plans to visit South Africa B.in the simple Keynesian model with no government and external sector,if an increase in investment expenditure of 150 results in a final increase in income of 600,if follows that the marginal propensity to consume must be 1.0,2 2.0,75 3.0,25 4.0,8

Answer 1

A-4;

B-2