1. Suppose a Canadian dollar buys 0.68 Euro. How many Canadian dollars do you need to buy...
Question:
1. Suppose a Canadian dollar buys 0.68 Euro. How many Canadian dollars do you need to buy a Euro?
2. 1pt Suppose the Canadian dollar appreciated by 10%. Now how many Canadian dollars would be needed?
3. 2pt Suppose the Canadian dollar is worth 0.75 USD. Acadia tuition costs $10,000 CAD per year, and American tuition costs $12,000 USD per year. Calculate the real exchange rate.
4. 1pt Use the number derived from 3 to conclude whether or not tuition is a better deal in Canada or the United States.
5. 1pt From 3, does purchasing power parity apply? Briefly explain why.
Suppose Y = 1000, C=600, G=220, T=200, I = 160 for questions 6-8. 6. 1pt Calculate NX.
7. 1pt What is private (S) and national (S+T-G) saving?
8. 2pt Based on the above, sketch the market for loanable funds situation for Canada.
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs