Answer to Question #105145 in Macroeconomics for Kg

Question

A The rand price of the US dollar increased to R12,02 in March 2015 from R11,53 in February 2015.This means that the South African... rand against the dollar and the dollar.... against the rand
1 appreciated, appreciated
2 appreciated, depreciated
3 depreciated, appreciated
4 depreciated, depreciated
B Which change in the rand dollar foreign exchange market will cause the ZAR (rand) to appreciate and the amount of USD traded daily to increase?
1 a shift of the supply of the USD curve to the left
2 a shift of the supply of the USD curve to the right
3 a shift of the demand for the USD to the left
4 a shift of the demand for the USD to the right
C What type of event must happen for the exchange rate to change from R8:$1 to R9:$1 and the amount of USD traded daily to increase,
1 China starts producing cheaper goods than the United States
2 The gold prices increases
3 More South African visit the United States
4 After a crime wave, American tourists cancel their plans to visit South Africa

Answer 1

A 3

B 2

C 4