Answer to Question #251961 in Macroeconomics for Mahlodi

Question

News about high level of criminal activity in South Africa discouraged American tourists from visiting South Africa.The decline in the number of tourists from the USA will lead to.


1 A decrease in the demand for dollars.and a subsequent depression of the rand against the dollar
2 An increase in the supply of dollars (leftward shift of the supply curve) causing an appreciation of the rand against the dollar
3 A depreciation of the rand against the dollar and a consequent decrease in the rate of inflation
4 A depreciation of the rand against the dollar and a conquest rise in the rate of inflation

Answer 1

1 A decrease in the demand for dollars.and a subsequent depression of the rand against the dollar