If the nominal exchange rate is 70Yen/CDN$, the price of a computer in Japan is 6000Yen and the price of a computer in Canada is 800CDN$, the real exchange rate is

Select one:

A.0.002 Japanese computer/Canadian computer

B.525 Japanese computer/Canadian computer

C.0.11 Canadian computer/Japanese computer

D.9.33 Canadian computer/Japanese computer

Which of the following is/are true?

I.In the classical model of the LR closed economy, when real interest rate increases, the investment spending schedule will shift left in the loanable funds market diagram.

II.In the classical model of the LR small open economy, when autonomous domestic investment increases, the domestic investment spending schedule will shift right in the domestic loanable funds market diagram.

Select one:

A.Only I is true.

B.Only II is true.

C.Both of the above are true.

D.None of the above is true.

Which of the following is/are true?

I.In the classical model of the LR small open economy, net exports is equal to exports minus imports

II.In the classical model of the LR small open economy, when net capital outflow is negative, the domestic economy is a net borrower.

Select one:

A.Only I is true.

B.Only II is true.

C.Both of the above are true.

D.None of the above is true.

In the long run, when a small open economy decreases its domestic government purchases (G<0)

I.domestic investment will not change in equilibrium.

II.domestic national savings will increase in equilibrium.

Select one:

A.Only I is true.

B.Only II is true.

C.Both of the above are true.

D.None of the above is true.