Currency Depreciation's Effect on US Exports

Steps:

• Rand depreciation means 1 USD buys more rands, strengthening the dollar relative to the rand.
• US exports, priced in USD, now cost more in rands for South African buyers.
• This reduces demand for US goods in South Africa, making exports more expensive.
• No direct link to US current account, unemployment, or broader economic indicators from this event alone.

Why A is correct:

• Exchange rate appreciation for the USD increases the relative price of US exports abroad, per the law of demand in international trade.

Why the others are wrong:

• B: Rand depreciation makes US imports from South Africa cheaper, potentially improving the US current account balance, not worsening it.
• C: No direct causal link to US unemployment; trade effects on jobs require more data on sectors affected.
• D: Same as C; insufficient evidence ties this to lower US unemployment.

Final answer: A