Answer to Question #91619 in Macroeconomics for Unknown287159

Question #91619

1. List four possible reasons for an appreciation of rand against the us dollar.
2. Explain how changes in exchange rates can influence exports and imports?

Expert's answer

4 reasons for an appreciation of rand against the us dollar.

When there is a higher demand for Rand.
When there is lower supply for Rand.
High economic growth
Low rates of inflation.

Explain how changes in exchange rates can influence exports and imports?

The exchange rate has an effect on the trade surplus, which in turn affects the exchange rate. A weaker domestic currency stimulates exports and makes imports more expensive. On the other hand, a strong domestic currency hampers exports and makes imports cheaper.

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Assignment Expert

15.04.20, 17:03

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Emely

15.04.20, 16:37

Trade policy that affect trade between south Africa and the USA is relaxed.This results in an increase in import from USA. This will result in?

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29.07.19, 15:12

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ALFRED

29.07.19, 13:57

1. Draw a demand and supply curve for British pounds (on the vertical axis plot rand per British pound). (10 marks) 2. How can this be illustrated in the diagram you have drawn? (3). 3. Does this represent an appreciation or depreciation of the South African rand relative to the British pound?

Mashamba

23.07.19, 23:15

Tnx for the answer very help full

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18.07.19, 17:06

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mulweli

18.07.19, 16:28

use examples to explain the difference between absolute advantage and comparative advantage in international trade