Unformatted text preview: V444
24) Initially the exchange rate between the South Korean won and the Canadian dollar is 1,000 won
per dollar. If the exchange rate falls to 900 won per dollar and the Canadian and South Korean
price levels do not change, then in the short run the real exchange rate
B) is 900 won per dollar.
C) either rises, falls, or remains the same but we don't know for sure.
does not change.
ca ebrobeside hisow sidi me
= 1000 1 90
25) How would a Canadian foreign aid payment to Haiti be recorded in Canada's balance of payments
A) As a positive entry in the capital and financial account.
B) As a positive entry in the official settlements account.
As a positive entry in the current account.
D) As a negative entry in the capital and financial account.
E) As a negative entry in the current account.
26) A very small country is an international lender and its supply of loanable funds increases. As a
result, the equilibrium quantity of loanable funds used in the country
and the country's
A) does not change; does not change
Bydoes not change; increases
does not change: decreases...
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- Fall '19