A10. Richard is a new immigrant to Canada and is asking about Canada's BOP. Which of the following transactions would appear as a debit in the current account? A. Canadian tourists in France purchase French francs. B. Canadians receive dividends on U.S. investment in Latin America. C. A Canadian subsidiary exports raw materials to its Dutch parent company. D. The Bank of Canada purchases German marks to hold in its official reserves. E. The Arabian Capital Investment Corporation makes a loan to a Canadian firm. All. Florencia claims to be a "master of the Philips curve". According to the long--run Philips curve, which of the following is true? A. Unemployment increases in the long--run with an increase in core inflation rate. B. Flow of wages follows a distinct pattern of "sticky downward, flexible upward". C. Increased automation will lead to lower levels of structural unemployment in the long--run. D. Changes in the composition of the overall demand for labour tend to be deflationary in the short--run. E. The NAIRU is independent of monetary and fiscal policy changes that affect aggregate demand