Answer to Question #135039 in Macroeconomics for cameron

Question

An appreciation of the rand against the dollar: (2)
(1) Will worsen the current account balance but improve domestic prices.
(2) Improve the current account balance but worsen domestic prices.
(3) Improve the current account balance as well as reduce domestic prices.
(4) Worsen both the balance on the current account as well as domestic prices.

Answer 1

(1) Will worsen the current account balance but improve domestic prices