) Which one of the following is a balance of payments account? A) current account B) borrowing account C) official lending account D) net interest account E) public account ) If the rate of return is 8 percent in Mexico and 3 percent in Canada, the A) law of one price predicts a single international rate of return between 8 percent and 3 percent. B) Mexican peso is expected to depreciate against the Canadian dollar by 5 percent. C) Mexican peso is expected to appreciate against the Canadian dollar by 5 percent. D) rate of return in Mexico is expected to fall to 3 percent. E) rate of return in Canada is expected to rise to 8 percent.
) Which one of the following is a balance of payments account? A) current account B) borrowing account C) official lending account D) net interest account E) public account ) If the rate of return is 8 percent in Mexico and 3 percent in Canada, the A) law of one price predicts a single international rate of return between 8 percent and 3 percent. B) Mexican peso is expected to depreciate against the Canadian dollar by 5 percent. C) Mexican peso is expected to appreciate against the Canadian dollar by 5 percent. D) rate of return in Mexico is expected to fall to 3 percent. E) rate of return in Canada is expected to rise to 8 percent.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Solve both questions in details and no plagiarism please otherwise I will give you downvote
Transcribed Image Text:5)
Which one of the following is a balance of payments account?
A) current account
B) borrowing account
C) official lending account
D) net interest account
E) public account
6)
If the rate of return is 8 percent in Mexico and 3 percent in Canada, the
A) law of one price predicts a single international rate of return between 8 percent and 3 percent.
B) Mexican peso is expected to depreciate against the Canadian dollar by 5 percent.
C) Mexican peso is expected to appreciate against the Canadian dollar by 5 percent.
D) rate of return in Mexico is expected to fall to 3 percent.
E) rate of return in Canada is expected to rise to 8 percent.
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