I'm not sure about the 4 questions. Some of them, I feel it's all true for the answers.
Suppose Cambodia currently has an import tax on all imported cars. If Cambodia were to produce a car itself, its domestic price is US$60,000. Japan can sell such a car at US$30,000 and the US can sell such a car at US$48,000. The implied maximum tariff rate that Cambodia can impose on imported cars is if trade is still relevant. If Cambodia signs a free trade agreement with Japan, the trade diversion effect from this agreement is a. 100%; zero 0 b. 25%; zero 0 c. 25%; positive 0 d. 100%; positive Clear my choice Suppose the exchange rate is flexible and the current account (CA) = $5 billion and the capital account (KA) is = $8 billion. To achieve balance of payments equilibrium, the currency of this country will so that net capital inflow will . Under a xed exchange rate, the central bank of this economy may its foreign exchange reserves. 0 a. Appreciate; fall; accumulate O b. Depreciate; fall; accumulate O c. Depreciate; rise; deplete 0 d. Appreciate; rise; deplete Suppose Vietnam currently has 100% import tax on all imported cars. Germany can sell such cars at US$30,000 and Canada can sell such cars at US$35,000. Because of the CPTPP, the trade creation effect is positive because cars will soon be for the Vietnamese consumers and the trade diversion effect is positive because cars will soon be for Vietnam as a country. 0 a. $5,000 cheaper; $25,000 more expensive 0 b. $25,000 cheaper; $5,000 more expensive 0 c. $25,000 more expensive; $5,000 cheaper Q d. $5,000 more expensive; $25,000 cheaper Which of the following is CORRECT about capital flows? 0 a. A positive net capital account implies that this economy is a net borrower from the rest of the world. b. Of the different types of capital flows, asset flow in the form of stocks and bonds is the most stable and least susceptible to capital flight driven by changes in market sentiment. O c. If a country has a fixed exchange rate system and experiences a sudden and significant capital outflow, this country is also likely to be experiencing a rise in its domestic currency money supply and increasing inflation. Q d. All of the answers above are correct. Clear my choice