Answer to Question #91851 in Macroeconomics for maphula ngwenya

Question

list four possible reasons for an appreciation of the rand against the us dollar

Answer 1

Possible reasons for appreciation:

1.     The higher demand for Rand can lead to the appreciation

2.    Lower rate of inflation in South Africa compared to the US

3.    The lower supply of Rand compared to US dollar can lead to rand appreciation

4.    Higher economic growth in South Africa compared to the US