Answer to Question #227785 in Macroeconomics for Lucy

Question

An increase in the demand for US goods imported into South Africa will have the following impact in the South African market:

1. The increased demand for US goods will lead to a decrease in the demand for dollars. TRUE OR FALSE?
2. The demand curve for dollars will shift to the left. TRUE OR FALSE?
3. This means that the rand has appreciated against the dollar. TRUE OR FALSE?
4. As a result of this, export prices in dollars will increase. TRUE OR FALSE?
5. Import prices in rands will increase. TRUE OR FALSE?
6. The volume of exports will increase. TRUE OR FALSE?
7. The volume of imports will decrease. TRUE OR FALSE?
8. The balance on the current account of the Balance of Payments will improve. TRUE OR FALSE?
9. The inflation rate in South Africa will rise. TRUE OR FALSE?

Answer 1

1.True

2.False

3.True

4.True

5.False

6.True

7.False

8. True

9.True