Are these predictions confirmed by the data

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Events in South Africa between 2000 and 2010 included the following:

a. At the start of the decade, a corruption scandal hurt the government's reputation, and the AIDS epidemic intensified.

b. From 2002 to 2005, the government budget deficit and the inflation rate both fell.

c. In 2007-2008, a shortage of electricity forced some of South Africa's mines to shut down.

d. In 2009, the world prices of metals mined in South Africa rose rapidly. According to the theories, how should each of these events have affected South Africa's exchange rate? Are these predictions confirmed by the data in given Figure? Explain.

1790_Figure-South Africas Nominal Exchange Rate.jpg

Reference no: EM131220883

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