Suppose a toy craze in Canada makes a particular Swiss-produced toy very popular. What effect would this toy have on the balance of trade? It would tend to affect Canada's balance of payments but not its balance of trade. It would tend to increase Canada's balance of trade deficit. It would tend to reduce any existing balance of trade deficit in Canada. It would tend to increase Canada's balance of trade surplus. Suppose the exchange rate between British pounds and Canadian dollars is originally $1.50 per pound. If it then changes to $2 for 1 pound, what will tend to happen to the volume of imports of British goods into Canada? The volume of imports will tend to rise. The volume of imports will tend to change in an indeterminate direction. The volume of imports will tend to fall. The volume of imports will tend to stay the same. Question 34 (1 point) Which statement is false? The discounted value of a loan is similar to the present value of an investment. Compound interest investments can be melled with exponential functions. Increasing the frequency of the compounding increases the final value of an investment A compound interest investment always gives a greater future value than a simple interest investment.