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1. There has been a recent increase in the demand for South African Rands in the foreign exchange market. Speculate the reasons for the increase in demand for Rands and explain the impact this would have on exchange rates.
2. The assumptions on the import and export effect are that if a currency depreciates, exports will improve and imports decrease and when the country's currency appreciates, exports will suffer and imports improve. However, this may not always be the case. Critically evaluate this phenomenon.
This document contains various important questions and their appropriate answers in the subject field of Economics.
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