ECS3703 Assignment 2 (COMPLETE QUESTIONS & ANSWERS) Semester 2 2024

ECS3703 Assignment 2 Full Solutions Semester 2 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)........... Question 1 Assume that South Africa trades with the rest of the world and has a deficit in its trade balance. With the aid of a diagram, explain how South Africa would use exchange rates to correct the deficit……………………………………………………….[25 marks] Question 2 Assume that South Africa’s trade balance improves due to an increase in exchange rates or changes in other factors. With the aid of a diagram, explain how this improvement would affect the country’s aggregate demand under fixed and flexible exchange rates……………………………………………….…………………[15 marks] Question 3 Briefly explain dollarization and its costs and benefits………………………[10 marks]