Assume the exchange rate was fixed at 1 Canadian dollar for 1 American dollar Would the following ev
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Assume the exchange rate was fixed at 1 Canadian dollar for 1 American dollar Would the following events cause pressure on the Canadian dollar to Appreciate or Depreciate?
Many Canadians plan to vacation in Florida for the winter ____________
Question 21: (1 point)
Fill in the blanks:
Assume the exchange rate was fixed at 1 Canadian dollar for 1 American dollar Would the following events cause pressure on the Canadian dollar to Appreciate or Depreciate?
Canadians are crossing the border to purchase their new cars in the United States ____________
Question 22: (1 point)
Fill in the blanks:
Assume the exchange rate was fixed at 1 Canadian dollar for 1 American dollar Would the following events cause pressure on the Canadian dollar to Appreciate or Depreciate?
A rise in the American rate of interest to a level substantially higher than that in Canada ____________
Question 23: (1 point)
Fill in the blanks:
Assume the exchange rate was fixed at 1 Canadian dollar for 1 American dollar Would the following events cause pressure on the Canadian dollar to Appreciate or Depreciate?
Americans are spending their summer vacations on Canada’s east coast ____________
table below contains hypothetical international balance of payments data for Canada All figures are in billions Compute with the appropriate sign (+ or -) and enter in the table the eight missing items What is the condition of the balance of payments in Canada?
Current account
(1) Canada goods exports
300
(2) Canada goods imports
-190
(3)Balance of trade
____________
(4) Canada exports of services
145
(5) Canada imports of services
-310
(6)Balance on services
____________
(7)Balance on goods and services
____________
(8) Net investment income
32
(9) Net transfers
-10
(10)Balance on current account
____________
Capital account
(11) Foreign purchases of assets in Canada
205
(12) Canada purchases of assets abroad
-58
(13)Balance on capital account
____________
(14) Current and capital account balance
____________
Official settlements account
(15)Official reserves
____________
(16)Balance of payments
0
Question 1: (1 point)
The long-run aggregate supply (LRAS) corresponds to the supply curve envisioned by classical economists
(a)
True
(b)
False
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