Answer to Question #251714 in Macroeconomics for rudo

Question

what will happen to the rand/dollar exchange rate and the equilibrium quantity of dollars if South African exportsbto the united states increase

Answer 1

The value of rand goes up, the equilibrium quantity of a dollar exchanged in the foreign market also increases. This happens because demand for rand in US becomes high. The equilibrium quantity of dollars increases because there will be more dollars in the foreign market which shall be exchanged for the Rand.