Fill in the blanks in the hypothetical balance of payments statement in the table below. Remember to enter a minus (-) sign to indicate negative values. Current Account Exports of goods Imports of goods I [ R Merchandise balance Export of services Import of services U T Services balance Balance of trade | P @ Primary income (investment) received from abroad Primary income (investment) paid abroad Primary income balance Secondary income (transfers) received from abroad [y P Secondary income (transfers) paid abroad Secondary income balance 115 Net foreign investment (= Capital Account Balance Overall Balance (Current + Capital) i 2 The graph below illustrates hypothetical supply and demand curves for the Canadian dollar. Use the graph to answer the questions below. Tools 1.02 S, D2 1.00 Price of Canadian dollars in U.S. dollars 0.98 0.96 0.94 0 40 80 120 160 200 240 280 320 360 400 Quantity of Canadian dollars (billions)Quantity of Canadian dollars (billions) a. What is the quantity of dollars exchanged, given D and 517 3 billion. b. What is this quantity worth in U.S. dollars? Round your answer to 1 decimal place. % billicn in the U.S. c.If the demand for the dollar increases by 80, draw in the new demand curve labelled D7 On the graph above, plot only the endpoints of the curve. d. What is the quantity of Canadian dollars exchanged if the exchange rate is flexible? quantity of Canadian $ exchanged: $ billion. Suppose instead that the dollar is fixed at the original value. e_As a result of the change in (c), what is the quantity of Canadian dollars exchanged? 3 billion. f. What is this quantity worth in U.S. dollars? Round your answer to 1 decimal place. 3 billion in the U.S 3 Karen operates a small foreign currency exchange business. She begins each day with three boxes of cash. Each box contains 14,500 units of Canadian currency and 14,500 units of another currency. The table below shows Karen's holdings of each currency at the end of a day's business. Box 1 Euros 9, 800 and $20, 200 Canadian Box 2 Japanese yen 7, 800 and 14, 600 Canadian Box 3 British pounds 11, 509 and 18, 600 Canadian What is the value of the Canadian dollar in terms of the three currencies? Round your answers to 2 decimal places. Dollar in terms of the euro: Dollar in terms of the yen: Dollar in terms of the British pound:4 The table below shows the annual demand and supply of cell phones in Canada (in tens of thousands), where Do is the domestic demand, Dw is the rest of the world demand, Sc is the Canadian supply, and Sw is the quantity supplied by manufacturers in the rest of the world. a) Complete the total demand (DT) and total supply (ST) columns. Price ($) DC DT SC SW ST 12 900 1, 580 720 1, 540 24 880 1, 540 730 1, 580 36 860 1, 500 740 1, 620 48 340 1, 460 750 1, 660 60 820 1, 420 760 1, 700 72 300 1 ,380 770 1, 740 84 780 1, 340 780 1, 780 96 760 1, 300 790 1, 820 108 740 1, 260 800 1, 860 b) What is the equilibrium world price and equilibrium quantity? Price: $ Quantity: c) If Canada was closed to international trade, what would be the equilibrium price and quantity in Canada? Price: $ Quantity: [ d) If Canada were open to international trade, how much would Canada import from the rest of the world? Quantity imported: e) If the Canadian government were to impose a quota and limit the amount of imported cell phones to 90 (tens of thousands), what would be the new price and quantity in Canada? Price: $ Quantity:5 The table below shows the production possibilities for Canada and Japan. Suppose that, prior to specialization and trade, both Canada and Japan are producing combination D. CANADA'S PRODUCTION POSSIBILITIES Product A B C D E DVD players 80 60 40 20 Bushels of wheat 0 60 120 180 240 JAPAN'S PRODUCTION POSSIBILITIES Product A B C D E DVD players 120 90 60 30 Bushels of wheat 0 25 50 75 100 a) Draw the production possibilities curve for Canada in the graph A, and indicate its present output position. Draw the production possibilities curve for Japan in graph B, and indicate its present output position. Plot only the endpoints of each curve in the graphing areas using the appropriate tool. Plot the output combination in each graph using the Point tool..' a) Draw the production possibilities curve for Canada in the graph A, and indicate its present output position. Draw the production possibilities curve for Japan in graph B, and indicate its present output position. Plot only the endpoints of each curve in the graphing areas using the appropriate tool. Plot the output combination in each graph using the Point tool. A Canada 280 Tools 240 S . PP Curve combination 200 o v . 2 160 g Trading Possi New combina 2 120 o 80 40 0 T 40 80 120 160 200 240 280 Quantity of wheat per period 5 B Japan 140 Tools 120 PP Curve combination 100 80 Trading Possil New combina DVD players 60 40 20 O 20 40 60 80 100 120 140 Quantity of wheat per periodTrading Possi New combina & o 2 60 o 40 20 (130, 20) 0 20 40 60 BO 100 120 140 Quantity of wheat per period b) Suppose that the two countries specialize and trade on the basis of 1 DVD player =1 unit of wheat. Draw the corresponding trading possibilities curves in graph A and graph B above. Plot only the endpoints of each curve in the graphing areas using the appropriate tool. c) After trade, if Canada still wishes to have 180 bushels of wheat, how many more DVDs could it have? d) Show the new combination in graph A above. Use the Point tool in graph A above to plot the new combination. e) If Japan still wishes to have 30 DVDs, how much more bushels of wheat could it have? f ) Show the new combination in graph B above. Use the Point tool in graph B above to plot the new combination