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Explain, with the aid of a graph, what will happen to the rand/dollar exchange rate and the equilibrium quantity of dollars if South African exports
Explain, with the aid of a graph, what will happen to the rand/dollar exchange rate and the equilibrium quantity of dollars if South African exports to the United States increas.
(Hint: In your answer, also comment on the effect on the current account of the balance of payments as well as on the level of domestic prices.)
(Note: Four marks for the graph and six marks for the explanation.)
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