Suppose that Tom, a South African trader, imports goods from the US and sells them in South Africa. Now suppose that the rand appreciates against the dollar. How would this affect Tom’s business?

Question

Answer

The prices of goods that Tom’s business imports will decrease in terms of rand.

Answer

The demand for US goods by Tom’s business will decrease because imports from US become more expensive when the rand appreciates.

Answer

The demand for US goods by Tom’s business will decrease because imports from US become more expensive when the dollar depreciates.

Answer

The prices of goods that Tom’s business imports will decrease in terms of dollar.

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Suppose that Tom, a South African trader, imports goods from the US and sells th...

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