an appreciation of the rand relative to the dollar. (b) a depreciation of the rand relative to the dollar. (c) an appreciation of the dollar relative to the rand. (d) that it will cost South Africans more to visit the United States.

an appreciation of the rand relative to the dollar. (b) a depreciation of the rand relative to the dollar. (c) an appreciation of the dollar relative to the rand. (d) that it will cost South Africans more to visit the United States.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter6: An Introduction To The Foreign Exchange Market And The Balance Of Payments

Section: Chapter Questions

Problem 2E

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Question

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

(a)
an appreciation of the rand relative to the dollar.
(b)
a depreciation of the rand relative to the dollar.
(c)
an appreciation of the dollar relative to the rand.
(d)
that it will cost South Africans more to visit the United States.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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