If Country M's residents obtain less foreign assets, then all else the same this

indicates

A. Capital outflow is decreasing but nothing about capital inflow

B. Capital outflow and capital inflow are increasing

C. Capital outflow is decreasing but capital inflow is increasing

D. Capital outflow is increasing and capital inflow is decreasing

When a person in Country A purchases a product from someone in Country B then

A. the person in Country B is gaining an asset of Country A

B. the person in Country A is gaining an asset of Country B

C. there is an unknown transfer of assets between the persons from Country A and B

D. there is no transfer of assets between the persons from Country A and B

Based on purchasing power parity if the inflation rate in Canada is higher than the

inflation rate in the US, all else the same,

A. the US dollar should not change relative to the Canadian dollar

B. the US dollar should depreciate relative to the Canadian dollar

C. the US dollar will change in an unknown way relative to the Canadian dollar

D. the US dollar should appreciate relative to the Canadian dollar

If there is an increase in the price level in the short-run then

A. consumption falls but investment rises

B. consumption rises but investment falls

C. consumption and investment will rise

D. consumption and investment will fall