Suppose the international demand and supply of Canadian dollars (in billions)is as shown in the following table:
This represents the total market for Canadian dollars (i.e.there are no transfers,speculation or arbitrage).
If the exchange rate is flexible,what will be the following values:
a)The Canadian dollar
b)The balance of trade.
c)The current account balance:
d)The overall balance of payments (current and capital accounts):
Suppose,on the other hand,that the exchange rate is fixed at US 0.86,what will be the following values:
e)The current account balance:
f)The total balance of payments (current and capital accounts):

Question

Suppose the international demand and supply of Canadian dollars (in billions)is as shown in the following table:
  This represents the total market for Canadian dollars (i.e.there are no transfers,speculation or arbitrage).
If the exchange rate is flexible,what will be the following values:
a)The Canadian dollar
b)The balance of trade.
c)The current account balance:
d)The overall balance of payments (current and capital accounts):
Suppose,on the other hand,that the exchange rate is fixed at US 0.86,what will be the following values:
e)The current account balance:
f)The total balance of payments (current and capital accounts):

Quizplus · Accepted Answer

The Answer of Suppose the international demand and supply of Canadian dollars (in billions)is as shown in the following table:
  This represents the total market for Canadian dollars (i.e.there are no transfers,speculation or arbitrage).
If the exchange rate is flexible,what will be the following values:
a)The Canadian dollar
b)The balance of trade.
c)The current account balance:
d)The overall balance of payments (current and capital accounts):
Suppose,on the other hand,that the exchange rate is fixed at US 0.86,what will be the following values:
e)The current account balance:
f)The total balance of payments (current and capital accounts):

Suppose the International Demand and Supply of Canadian Dollars (In