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