Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part 1 : A/ True/false questions 1. If the price of a bond goes up, its interest rate goes down 2. One of the main

Part 1 :

A/ True/false questions

1. If the price of a bond goes up, its interest rate goes down 2. One of the main economic functions of banks is to act as a lender of last resort 3. When a depositor uses a debit card to buy something, their bank's reserve ratio decreases 4. If the interest rate rises, the quantity demanded of real money falls 5. The reserves of a bank consist of the currency that the bank keeps in its vaults and its deposits at the Bank of Canada

Part 2 :

A/ True/false questions

1. If the exchange rate between the Canadian dollar and the yen goes from 130 for 1 CAD to 140 for 1 CAD; the Canadian dollar has appreciated

2. When the dollar is expected to appreciate in the foreign exchange market, the supply of Canadian dollars increases

3. A country that is a net borrower is necessarily a debtor country

4. A rise in Canadian interest rates leads to an increase in demand for Canadian dollars

5. With a floating exchange rate regime, the monetary policy of the Bank of Canada does not affect the exchange rate

Part 3 :

A/ True/false questions

1. An increase in government spending can create persistent inflation 2. There is stagflation when real GDP decreases and the price level increases 3. The long-term Phillips curve shows that if the inflation rate increases, unemployment decreases 4. The short-term Phillips curve shows that if the inflation rate increases, unemployment decreases 5. According to Keynesian theory, a decrease in aggregate demand leads to a recession

Part 4 :

A/ True/false questions

1. The federal deficit is the total amount of borrowings that the federal government has incurred 2. If a government budget is balanced one year, and the next year the percentage increase in budget spending is greater than the percentage increase in revenue, that budget will show a deficit. 3. If there is an increase in real GDP, there is an increase in autonomous taxes 4. In the short term, a reduction in autonomous taxes will increase equilibrium real GDP 5. The Laffer curve illustrates the Laffer hypothesis that a reduction in the tax rate always increases tax revenue

Part 5 :

A/ True/false questions

1. When a Canadian citizen stays in a hotel in France, Canada is exporting a service

2. A tariff imposed on a good raises the price of that good and reduces the quantity traded

3. Japan engages in commercial dumping when the domestic price of its steel is less than the price at which it sells in Canada

4. To export a good, the world price must be lower than the domestic price

5. Imports benefit consumers

Note please can you help me with this homework please im pleading with you.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics A Problem Solving Approach

Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War

3rd edition

978-1133951483

Students also viewed these Economics questions