If SA imposes a quota on the importing of clothing produced in China, so reducing SA imports of clothing, which of the following is true regarding the market for foreign currency exchange?
A) The demand for rands decreases and the rand depreciates.
B) The supply of rands increases and the rand depreciates.
C) The supply of rands decreases and the rand appreciates.
D) The demand for rands increases and the rand appreciates.
Correct Answer:
Verified
Q7: All other things being equal, an increase
Q8: Net capital outflow is the purchase of
Q22: If SA imposes a quota on the
Q23: Government trade policies, such as tariffs and
Q25: In response to an import quota
A)exports increase
Q26: If a country's government wants to eliminate
Q27: Crowding out caused by government budget deficits
Q28: The phrase "twin deficits" refers to
A)a country's
Q29: Increased foreign investment in SA causes the
A)balance
Q37: A large and sudden movement of capital
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