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What effect will this have on south africas gdp

Assignment Help Macroeconomics
Reference no: EM133339822

Question 1:

South Africa has decided to increase purchases from its trading partner, Botswana.

(a) What effect will this have on South Africa's GDP? Explain.
(b). Will the value of South African rand appreciate, depreciate, or remain the same? Explain.

Question 2:

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 Australia's current account balance? Explain.

Reference no: EM133339822

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