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 Merchandise balance Export of services Import of services Services balance Balance of trade Primary income (investment) received from abroad | i I = W ra A A = Primary income (investment) paid abroad Primary income balance Secondary income (transfers) received from abroad secondary income (transfers) paid abroad Secondary income balance & Balance on Current Account Capital Account Foreign investment in Canada 115 Canadian investment abroad MNet foreign investment (= Capital Account Balance [ Overall Balance (Current + Capital) 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, 806 and 14, 600 Canadian Box 3 British pounds 11, 500 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:The table below shows the annual demand and supply of cell phones in Canada (in tens of thousands), where D is the domestic demand, Dyy is the rest of the world demand, Sc is the Canadian supply, and Syy is the quantity supplied by manufacturers in the rest of the world. a) Complete the total demand (D7) and total supply (ST) columns. 5 ST W 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 DVD players D E 80 60 40 Bushels of wheat 20 60 120 180 246 JAPAN'S PRODUCTION POSSIBILITIES Product A B C DVD players D E 120 90 50 Bushels of wheat 30 0 25 50 75 100" a) Draw the production possibilities curve for Canada in the graph A, and indicate its present cutput 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. Your Graph Score: 33% A Canada 280 240 / : PP Curve combination 200 yd . w % 160 Trading Possi New combina - 2 120 o 80 40 0 40 B0 120 160 200 240 280 Quantity of wheat per period 5 Your Graph Score: 33% B Japan 140 120 PP Curve combination 100 O 80 Trading Possil New combina DVD players 60 40 20 20 40 60 80 100 120 140 Quantity of wheat per period60 DWVLC 40 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