1.

State whether each of the following Canadian international transactions is a debit or a credit in the country's balance of payments. Also, state whether it is a current account or a capital account transaction, and whether it increases or decreases the balance of payments.

a.Yukon Teachers' Federation purchases German government bonds

Part B

Graph each of the following (with appropriate labels) and briefly explain the shape of each graph along with what it represents:

a.LM curve

b.Short-run Phillips curve

c.Solow steady state equilibrium growth