Answer to Question #215410 in Economics for Paballo

Question

 movement from X to X’ can result from …

[1] a depreciation of the rand against the dollar.

[2] an appreciation of the rand against the dollar.

[3] an increase in domestic income.

[4] a decrease in domestic income.

X, Z

Y

𝑋ത X = 𝑋ത

Z= 𝑍ҧ+ 𝑚𝑌

𝑍ҧ

𝑋ത′

Answer 1

If X is exports, then the movement from X to X’ can result from an increase in domestic income.

So, the correct answer is [3].