Answered step by step
Verified Expert Solution
Question
1 Approved Answer
a) Complete the table below. Exports of Foreign Import of Total Value of Goods and Income Investment Total Demand Goods and Canadian Supply of Canadian
a) Complete the table below. Exports of Foreign Import of Total Value of Goods and Income Investment Total Demand Goods and Canadian Supply of Canadian Dollar Services Earned in Canada for Canadian Services Foreign Income Investment Canadian (in US$) (D1) Abroad (D2) Dollars (S1) Paid Abroad Abroad ($2) Dollars 0.62 60 75 0. 64 1 60 75 1 0.66 60 1 75 1 0. 68 60 75 0. 70 60 75 0. 72 6B 75 0. 74 60 75 0. 76 60 75 0. 78 60 75 60 75 0. 82 75 0 . 84 60 75 0. 86 60 75 0. 88 60 75 0. 90 60 75 0.92 60 75 0. 94 60 75 Suppose that Canada is operating with a flexible exchange rate system. If you are entering any negative numbers be sure to include a negative sign (-) in front of those number. b) What is the equilibrium value of the Canadian dollar? Round vour answer to 2 decimal places.Suppose that Canada is operating with a flexible exchange rate system. If you are entering any negative numbers be sure to include a negative sign (-) in front of those number. b) What is the equilibrium value of the Canadian dollar? Round your answer to 2 decimal places. Canadian dollar: $ US c) What is the value of its balance of trade? Balance of trade:$ d) What is its current account balance? Current account balance:$ e) What is its capital account balance? Capital account balance:$ f) What is the overall balance of payments (current and capital accounts)? Total balance of payments:2 The graph below shows the demand and supply of Canadian dollars where: . Dj is the demand by other countries for Canadian dollars to buy Canadian exports. . D2 is the demand by other countries for Canadian dollars to buy Canadian investments. 10 . 51 is the supply of Canadian dollars by Canadians to buy Imports from abroad. points . S2 Is the supply of Canadian dollars by Canadians to buy Investments from abroad. Assume there are no transfers, speculation, or arbitrage. eBook Pant References Price of Canadian $ (in US $s) 0.94 0.92 0.90 0.88 S1 0.86 0.84 0.82 0.80 0.78 0.76 0.74 0.72 0.70 D1 0.68 D2 0.66 0.64 0.62 0.60 80 90 100 110 120 130 140 150 160 170 180 190
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started