An increase in criminal activity in South Africa acts as a deterrent to foreign tourists considering visiting South Africa, and as a result, there is a decline in the number of American tourists to South Africa. Explain, with the aid of a graph, the effect of this on the rand/dollar exchange rate and the equilibrium quantity of dollars.

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Chapter19: The International Monetary System: Order Or Disorder
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An increase in criminal activity in South Africa acts as a deterrent to foreign tourists

considering visiting South Africa, and as a result, there is a decline in the number of

American tourists to South Africa.  

Explain, with the aid of a graph, the effect of this on the rand/dollar exchange rate

and the equilibrium quantity of dollars.

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