Answer to Question #269829 in Macroeconomics for Night Owl

Question

Q.1.7 As a result of more Europeans visiting South Africa, we can expect, ceteris paribus:

(1) An appreciation of the rand relative to the euro;

(2) A depreciation of the rand relative to the euro;

(3) An appreciation of the euro relative to the rand;

(4) That it will cost South Africans more to visit Europe.

Answer 1

As a result of more Europeans visiting South Africa, we can expect, ceteris paribus:

(1) An appreciation of the rand relative to the euro;