50 Please answer all, thanks
50. If a Canadian corporation purchases a product made in Europe and the European pro- ducer uses the proceeds to purchase a Canadian government bond, then Canadian net exports , and net capital outflows
A. increase; increase
B. increase; decrease C. decrease; increase D. decrease; decrease E. decrease; remain the same
51. The nominal exchange rate between the Canadian dollar and the Euro is the: A. number of Euros you can get for lending one dollar in France for one year. B. number of Canadian dollars you can get for one Euro C. price of Canadian goods divided by the price of European goods D. price of European goods divided by the price of Canadian goods E. number of Canadian exports from Europe you can get for one Canadian import to Europe
52. If Canada decides to adopt a fixed exchange rate policy with the United States, all of the following are true EXCEPT: A. The Bank of Canada will need to have a reserve of U.S. dollars.
B. The Bank of Canada's monetary policy will no longer be independent. C. The Bank of Canada will have to buy and sell Canadian dollars to defend the level of the exchange rate. D. The Bank of Canada can still supply an unlimited amount of Canadian dollars
E. The Government of Canadas fiscal policy will no longer be independent.
53. If Canada decides to fix its exchange rate with Europe at 1 Euro for 1 Canadian dollar but the Government of Canada wants to keep the actual exchange rate below this parity value at 0.9 Euros for 1 Canadian dollar. This policy will because
A. fail; Canada does not have an infinite reserve of Canadian dollars. B. fail; Canada does not have an infinite reserve of Euros. C. succeed; Canada has an infinite reserve of Euros.
D. succeed; Canada has an infinite reserve of Canadian dollars E. fail; Canada has an infinite reserve of Canadian dollars.