Answer to Question #93853 in Macroeconomics for Nomthandazo

Question

A decrease in the demand for USA dollar ($) in the South African foreign exchange market would result if there is [1] a decrease in the South African exports to the USA. [2] a decrease in the gold price in South Africa. [3] a decrease in the South African tourists to the USA. [4] a decrease in the USA tourists to South Africa.

Answer 1

The answer is 3.

A decrease in the demand for USA dollar ($) in the South African foreign exchange market would result if  there is a decrease in the South African tourists to the USA.

If the inhabitants of South Africa travel less to the United States, then they need less currency - the US dollar, that is, the demand for this currency is falling