Course: Introductory Macroeconomics Topic: The foreign exchange markets earning Activity #10 Complete the following tables. Base scenario Exchange rate Price in US$ product The Original Price 1C$=1US$ or C$ Canadian Exporter wheat 350 C$ per tonne 1C$=1US$ Canadian Importer apples 2 US$ per kg 1C$=1US$ Canadian Consumers apples 3 US$ per kg 1C$=1US$ Note: The exporters sell their products in the United States (therefore, the price must be in US$), and the importers buy their products from the United States (therefore, the price must be in C$). Scenario #1: More expensive C$ The Original Price Exchange rate Price in US$ product 1C$ = 1.20 US$ or C$ Canadian Exporter wheat 350 C$ per tonne Canadian Importer apples 2 US$ per kg Canadian Consumers apples 3 US$ per kg Note: The exporters sell their products in the United States (therefore, the price must be in USS), and the importers buy their products from the United States (therefore, the price must be in C$). The EFFECTS: Change in Exports: Change in Imports: The Balance of Payments: Sheet1 Sheet2 Sheet3