South Africa is a major wine producer. As Americans become more familiar with those wines and show an increased preference for them, an increased __________ the South African rand will cause the dollar to __________ relative to the rand.

Question

Quizplus · Accepted Answer

An increased demand for South African wines in the U.S. would lead to an increased demand for the South African rand (to pay for these wines), causing the dollar to depreciate relative to the rand as more dollars are exchanged for rands to make purchases.

South Africa Is a Major Wine Producer