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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