The law of supply of foreign exchange tells us that, other things remaining the same, Select one: O A. the higher the exchange rate, the greater is the supply of Canadian dollars O B. the lower the exchange rate, the smaller is the supply of Canadian dollars. O C. the higher the exchange rate, the greater is the quantity of Canadian dollars supplied. O D. the lower the exchange rate, the greater is the quantity of Canadian dollars supplied. O E. the lower the exchange rate, the greater is the supply of Canadian dollars.

If Canadian exports of goods and services were $37 billion, imports of goods and services were $42 billion, transfers by Canadians to foreigners were $3 billion and transfers from foreigners to Canadian citizens were $2 billion, then the current account balance would be O A. $4 billion. O B. - $6 billion. O C. $8 billion O D. $6 billion. O E. - $4 billion.

The capital-service account is the section of the account that records the a. Current; income paid to foreign owners of assets in Canada and income received by Canadians for assets located abroad. O b. Capitalt; the foreign-exchange reserves held by the Bank of Canada. O c. Current; the interest charges and earnings of Canadian importers and exporters. O d. Current; the financial reserves held by the Bank of Canada which they can use in the foreign-exchange market. e. Capital; the net change in Canadian investments abroad and the net change in foreign investments in Canada.

If the price of an atomic burger is $3 CAD in Toronto and 4 Bottle Caps in New Vegas, and the Real Exchange Rate is 1.5, then the exchange rate is OA 09 Bottle Caps per CAD. O B. 1.125 Bottle Caps per CAD OC. 16 Bottle Caps per CAD. OD. 2 Bottle Caps per CAD. O E. none of the above