1. The U.S. dollar exchange rate increased from $0.89 Canadian in June 2009 to $0.96 Canadian in June 2010. Did the U.S. dollar appreciate or depreciate against the Canadian dollar? (2)

1. Consider the following data: The money supply is $1 trillion, the price level equals 2, and real GDP is $5 trillion in base-year dollars. What is the income velocity of money? (2)

1. Purchasing-power parity holds between the nations of Ectenia and Wiknam, where the only commodity is Spam. In 2015, a can of Spam costs 4 dollars in Ectenia and 24 pesos in Wiknam. What is the exchange rate between Ectenian dollars and Wiknamian pesos? (2)

1. Would each of the following groups be happy or unhappy if the U.S. dollar depreciated? (2)

1. Bangladeshi tourists planning a trip to the United States
2. an American firm trying to purchase property overseas