Answer to Question #161527 in Macroeconomics for Kamohelo

Question

A sudden increase in the number of tourists from South Africa to US will lead to

Answer 1

The sudden increase in tourists from South Africa to US will result in South Africa tourists offering more rands. Therefore, the supply curve for dollars will shift to the right causes an appreciation of the dollar on the US foreign exchange market. Therefore, the correct answer is [3] an appreciation of the dollar and a rightward shift of the supply of Rand curve on the US

foreign exchange market.