ECON-1012-B-Introduction to Macroeconomics
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Today the interest rate in Japan is 3 percent per year and in Canada it is 6 percent per year. The current exchange rate is 110 Japanese yen per dollar, and it is generally expected that in one year the exchange rate will be 106.7 yen per dollar. Which of the following outcomes occur?
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If Northland is currently a net lender and a debtor nation, which of the following statements is correct?
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Which of the following events would lead to an appreciation of the Canadian dollar against the U.S. dollar?
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What does the law of one price state?It states that
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What change occurs in the market for loanable funds when the real interest rate falls?
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If households' disposable income decreases, what happens in the market for loanable funds?
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What will happen in the loanable funds market when a country increases its budget surplus?When the government increases its budget surplus, the supply of loanable funds ________, private saving ________, and investment ________.
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What is the change in the value of a firm's capital called?
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If households' disposable income increases, why does the real interest rate change?Saving ________ and the real interest rate ________.
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How does an increase in the real interest rate influence the loanable funds market?
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