If there is an outward shift Canadian demand for French goods, the result will be A) a d

If there is an outward shift Canadian demand for French goods, the result will be A) a d

 If there is an outward shift Canadian demand for French goods, the result will be

A) a decrease in the dollar price of a euro.

B) an inward shift in French demand for Canadian goods.

C) a decrease in euros traded.

D) an increase in the dollar price of a euro.

 

72) If there is an inward shift Canadian demand for French goods, the result will be

A) a decrease in the dollar price of a euro.

B) an inward shift in French demand for Canadian goods.

C) a decrease in euros traded.

D) an increase in the dollar price of a euro.

73) An increase in the rate of interest in Canada will most likely

A) reduce the attractiveness of investment in Canada.

B) lead to a decrease in the value of the Canadian dollar.

C) lead to an inflow of funds to Canada and an appreciation of the dollar.

D) provide a stimulus to our export industries.

74) Canada's balance of payments is likely to improve when

A) the inflation rate increases in Canada relative to other countries.

B) there is an increases in political instability in other countries.

C) the world demand for Canadian products falls.

D) the Canadian government increases its spending on foreign aid.

 

75) The demand for dollars will increase when

A) real interest rates in Canada fall.

B) Canadian labour productivity increases relative to the world.

C) the world is perceived as more stable than it used to be.

D) Canadians develop a taste for more imported products.

 

76) Canada's balance of payments is likely to improve when

A) there is an increase in political instability in other countries.

B) the inflation rate in the Canada rises relative to other countries.

C) the Canadian government increases its spending on foreign aid.

D) Canadian people want to invest more in foreign countries.

77) The demand for euros will increase when

A) real interest rates in Europe fall.

B) Canadians change preferences in favour of domestically produced goods.

C) Europe becomes more productive relative to Canada.

D) Canada is perceived as more stable politically and economically than Europe.

78) If Canada looks more economically and politically stable relative to the rest of the world, this will

A) decrease the demand for dollars.

B) increase the demand for dollars.

C) have no effect on the demand for dollars.

D) stop all trading between the currencies of Canada and other countries.

 

79) Under a gold standard, a trade deficit in Europe and a trade surplus in Canada, ignoring trade with other countries, could result in

A) an appreciation of the euro.

B) a depreciation of the Canadian dollar.

C) gold flows from Europe to Canada.

D) gold flows from Canada to Europe.

 

80) Other things being constant, if the Canadian real rate of interest exceeds that of our trading partners, we expect

A) political instability in Canada.

B) an improvement in Canadian balance of payments.

C) an appreciation of Canadian currency.

D) a "dirty float" will emerge.