econ

1. A country has $60 million of domestic investment and net capital outflow of $10 million. What is saving? 2. On behalf of your rm, you make frequent trips to Hong Kong. You notice that you always have to pay more dollars to get enough local currency to get your suits dry-cleaned than you have to pay to get your suits dry-cleaned in Canada. Is this consistent with purchasing-power parity? Yes, if prices in Hong Kong are rising less rapidly than prices in Canada. Yes, if prices in Hong Kong are rising more rapidly than prices in Canada. No, but it can be explained by arbitrage across international borders. No, but it might be explained by limited opportunities for arbitrage across international borders