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3 . South Africa has decided to increase purchases from its trading partner, Botswana. ( a ) What effect will this have on South Africa's

3. South Africa has decided to increase purchases from its trading partner, Botswana.
(a) What effect will this have on South Africa's GDP?(1 pt). Explain. (1 pt)
(b). Will South Africa's capital or financial account have a deficit, a surplus, or remain the same? (1 pt). Explain (3 pts)
(c). To offset the effect on the value of the South African Rand from part (a), will South Africa's Central Bank buy or sell Rands in the foreign exchange market? (1 pt)
Bonus: +1
An Australian company builds a $200 million factory in India. The currency in Australia is the dollar and the currency in India is the rupee.
(a) How will the transaction above affect Australias current account balance?

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