Q.1.4News about high levels of criminal activity in South Africa discourages Americantourists from visiting South Africa. This decline in the number of tourists from theUSA will lead to:(1)A decrease in the demand for dollars and a subsequent depreciation of therand against the dollar.(2)An increase in the supply of dollars (leftward shift of the supply curve)causing an appreciation of the rand against the dollar.(3)A depreciation of the rand against the dollar and a consequent decrease inthe rate of inflation.(4)A depreciation of the rand against the dollar and a consequent rise in therate of inflation.

Answer : (4) A depreciation of the rand against the dollar and a consequent rise in the rate of…

Answered: Q.1.4 News about high levels of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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