An open economy interacts with the rest of the world through its involvement in world markets for poods and services and world financial markets. Athough it can oten result in an imbalance in these markets, the rollowing identity must renain true: Nen Cupital Ohtinow = Net Eixporls In other words, if a transaction directly affects the left side of this equation, then it must also affect the riaht side. The following problem will help you understand why this identity must hold. Suppose you are the purchasing manager for a large chain of restaurants in Canada, and yau need ta make your semiannual purchase of tea. Yau pay $1,500,000 far a shipment of tea from an Indian tea praducer. Determine the effects of this transaction on exports, imports, ano net exports in the Canadian economy, and enter your resuits in the foliowing tabie. If the direcbion of change is " ho change, "enter "o" in the Magnitude of Change column. Hint: The magnitude of change should always be positive, regardless of the direction of change. Because af the identity equatian that relates to net exports, the in Canadian net capital butflow. Which of the fullaving is an exarnple of how Canada might be affected in this scenario? Check an that apply. Canada sells $1,500,000 worth of bonds ta the Indian tea praducer. The Indlan tea producer purchases $1r500,000 worth of stock spread out over a few Canadlan companles, The Indian tea producer hangs on to the $1,500,000 so that it can use the Canadian dollars to make investments. An open economy interacts with the rest of the world through its involvement in world markets for poods and services and world financial markets. Athough it can oten result in an imbalance in these markets, the rollowing identity must renain true: Nen Cupital Ohtinow = Net Eixporls In other words, if a transaction directly affects the left side of this equation, then it must also affect the riaht side. The following problem will help you understand why this identity must hold. Suppose you are the purchasing manager for a large chain of restaurants in Canada, and yau need ta make your semiannual purchase of tea. Yau pay $1,500,000 far a shipment of tea from an Indian tea praducer. Determine the effects of this transaction on exports, imports, ano net exports in the Canadian economy, and enter your resuits in the foliowing tabie. If the direcbion of change is " ho change, "enter "o" in the Magnitude of Change column. Hint: The magnitude of change should always be positive, regardless of the direction of change. Because af the identity equatian that relates to net exports, the in Canadian net capital butflow. Which of the fullaving is an exarnple of how Canada might be affected in this scenario? Check an that apply. Canada sells $1,500,000 worth of bonds ta the Indian tea praducer. The Indlan tea producer purchases $1r500,000 worth of stock spread out over a few Canadlan companles, The Indian tea producer hangs on to the $1,500,000 so that it can use the Canadian dollars to make investments