Refer to the following table, in which Q_d is the quantity of loonies demanded, P is the dollar price of loonies, Q_s is the quantity of loonies supplied in year 1, and Q_s' is the quantity of loonies supplied in year 2. All quantities are in billions and the dollar-loonie exchange rate is fully flexible.

Qd	P	Qs	Qs'
10	125	30	20
15	120	25	15
20	115	20	10
25	110	15	5

Instructions: Enter your answer as a whole number.

A. In year 2, what quantity of loonies would the government of Canada have to buy or sell to balance its capital and financial account with its current account? _________ (Sell or Buy) __________ billion loonies.

B. In what specific account would this purchase or sale show up in Canadas balance-of-payments statement: Foreign purchases of assets in Canada or Canada's purchase of assets abroad? ___________ (Foreign purchases of assets in Canada or Canada's purchase of assets abroad)

c. Would this transaction increase Canadas stock of official reserves or decrease its stock? __________ (Increase or Decrease)