Answer to Question #135395 in Macroeconomics for Lebohang

Question

What will not cause a depreciation of the rand against the dollar

Answer 1

ANSWER:

As when there is a surge in the volume and value of imported goods and services coming into a country leading to a trade deficit(due to rise in imports) and thus a deficit on the current account of the balance of payments leads to a net outflow of currency, causing exchange rate weakness. So in all the options given all other cause an outflow of currency thus weakening the exchange rate.

A decrease in import from united States.