Explain, with the aid of a graph, the effect on the rand/dollar exchange rate and the equilibrium quantity of dollars if there is a decrease in imports from the USA to South Africa. In your answer comment on the effect of this on the current account balance as well as on domestic prices.

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter21: International Trade And Finance
Section21.6: Exchange Rates
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Explain, with the aid of a graph, the effect on the rand/dollar exchange rate and the equilibrium quantity of dollars if there is a decrease in imports from the USA to South Africa.

In your answer comment on the effect of this on the current account balance as well as on
domestic prices.

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