If the world real interest rate falls, then a country that is an international lender Select one: O A. changes from being a net foreign lender to a net foreign borrower. B. does not change the amount of its lending. C. decreases the amount of its lending. O D. increases the amount of its lending. O E. none of the above

Suppose that a laptop computer sells in China for 3,120 yuan, and that the exchange rate between the Canadian dollar and the yuan is 13 yuan per Canadian dollar. If you buy the laptop in China it will cost you the equivalent of Canadian. ..... O A. $406 O B. $40.6 OC. $24 O D. $4,056 O E. $240

A 216.

If one Canadian dollar buys US$0.85, and one Euro buys US$1.20, then one Euro should buy O a. C$1.02 O b. C$1.41 O c. C$2 O d. C$1.64

If the income in Mexico increases gradually, then most likely Mexico will import goods and services from other countries. more O the same amount less O either more or less depending on political circumstances

6. Most foreign exchange transactions are through the U.S. dollar. If the transaction is expressed as the foreign currency per dollar this is known as _____________ whereas ___________ are expressed as dollars per foreign unit. a. European terms; indirect b. American terms; direct c. American terms; European terms d. European terms; American terms

The current account is the record of receipts from other countries. other countries, minus official lending to; record of foreign investment in; interest and rents other countries, plus the net amount of O A. record of foreign investment in; transfer payments to; capital O B. O C. O D. the sale of goods and services to; payments for goods and services bought from; interest and transfers payments for goods and services bought from; the sale of goods and services to; wages and transfers received from and paid to

Suppose that a Big Mac costs $6 in the US, and Yuan 12 in China. You are told that the exchange rate between $ and Yuan is Yuan=$0.5 From what you know about PPP theory and Law of One Price, the market value of the Yuan is.. O Overavalued O Just right O undervalued