100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Solutions for Macroeconomics, 16th Canadian Edition by McConnell (All Chapters included) CA$42.37   Add to cart
Quickly navigate to
Preview
  2.  
  3. Macroeconomics 101
  4.  
  5. Macroeconomics 101

Exam (elaborations)

Solutions for Macroeconomics, 16th Canadian Edition by McConnell (All Chapters included)
 11 views  0 purchase
  • Course
  • Macroeconomics 101
  • Institution
  • Macroeconomics 101

Complete Solutions Manual for Macroeconomics, 16th Canadian Edition by Campbell McConnell, Stanley Brue, Sean Flynn, Tom Barbiero ; ISBN13: 9781260881356.....(Full Chapters included and organized in reverse order from Chapter 18 to 1)...CHAPTER 1: Limits, Alternatives, and Choices CHAPTER 2: The M...

[Show more]

Preview 4 out of 485  pages

Document information

  • October 7, 2024
  • 485
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • solutions
  • manual
  • answer guide
  • teaching notes
  • macroeconomics
  • 16th canadian edition
  • 16ce
  • mcconnell
  • 9781260881356
  • solutions manual

Written for

  • Macroeconomics 101
  • Macroeconomics 101

Seller

avatar-seller
mizhouubcca

Reviews received

Content preview

Macroeconomics, 16th Canadian
Edition by Campbell McConnell



Complete Chapter Solutions Manual
are included (Ch 1 to 18)




** Immediate Download
** Swift Response
** All Chapters included
** ABA Teaching Notes

,Table of Contents are given below

CHAPTER 1: Limits, Alternatives, and Choices

CHAPTER 2: The Market System and the Circular Flow

CHAPTER 3: Demand, Supply, and Market Equilibrium

CHAPTER 4: Market Failures Caused by Externalities and Asymmetric Information

CHAPTER 5: Public Goods, Public Choice, and Government Failure

CHAPTER 6: An Introduction to Macroeconomics

CHAPTER 7: Measuring the Economy’s Output

CHAPTER 8: Economic Growth

CHAPTER 9: Business Cycles, Unemployment, and Inflation

CHAPTER 10: Basic Macroeconomic Relationships

CHAPTER 11: The Aggregate Expenditures Model

CHAPTER 12: Aggregate Demand and Aggregate Supply

CHAPTER 13: Fiscal Policy, Deficits, Surpluses, and Debt

CHAPTER 14: Money, Banking, and Money Creation

CHAPTER 15: Interest Rates and Monetary Policy

CHAPTER 15B: Financial Economics

CHAPTER 16: Long-Run Macroeconomic Adjustments

CHAPTER 16B: Current Issues in Macro Theory and Policy

CHAPTER 17: International Trade

CHAPTER 18: The Balance of Payments and Exchange Rates

CHAPTER 18B: The Economics of Developing Countries

,Solutions Manual organized in reverse order, with the last chapter
displayed first, to ensure that all chapters are included in this document.
(Complete Chapters included Ch18-1)

Chapter 18 - The Balance of Payments, Exchange Rates, and Trade Deficits
McConnell Brue Flynn Barbiero 16ce



DISCUSSION QUESTIONS
1. Do all international financial transactions necessarily involve exchanging one currency for
another? Explain. Could a nation that neither imports nor exports goods and services still
engage in international financial transactions? LO18.1
Answer: The answer is almost certainly a yes. Only in rare cases would you find barter
exchanges (goods and services for other goods and services). Yes, they could engage in
financial transactions (the exchange of assets across countries).


2. Canadian exports earn supplies of foreign currencies that Canadians can use to finance
imports. Indicate whether each of the following creates a demand for or a supply of European
euros in foreign exchange markets: LO18.1
a. A Canadian airline firm buys several Airbus planes assembled in France.
b. A German automobile firm decides to build an assembly plant in Halifax.
c. A Canadian university student decides to spend a year studying at the Sorbonne in Paris.
d. An Italian manufacturer ships machinery from one Italian port to another on a Liberian
freighter.
e. The Canadian economy grows faster than the French economy.
f. A Canadian government bond held by a Spanish citizen matures and the loan amount is
paid back to that person.
g. It is widely expected that the euro will depreciate in the near future.
Answer: Canadian exports lead to an increase in the foreign-currency bank deposit holdings
of Canadians. These holdings will be decreased through Canadian purchases of imports.
Hence, the foreign-currency assets earned through exports can be used to finance imports.
a. A demand for euros: The Canadian airline must purchase euros before purchasing the
Airbus planes.
b. A supply of euros: The German automobile firm must purchase CANADIAN dollars, or
supply euros, before building the plant.
c. A demand for euros: The Canadian college student must purchase euros before studying
in France.

18-1

, Chapter 18 - The Balance of Payments, Exchange Rates, and Trade Deficits


d. A supply of euros: The Italian manufacturer must purchase Canadian dollars, or supply
euros, to pay the Liberian freighter (which requires payment in CANADIAN dollars).
e. A demand for euros: Since the Canadian economy grows faster than the French economy,
Canadian imports from France will grow faster than France's imports from Canada
holding everything else constant. To buy these additional French goods Canada will
purchase more (net) euros.
f. A demand for euros: Canada pays the Spanish citizen in Canadian dollars. The Spanish
citizen then purchases euros so she has currency she can use in her home country.
g. A supply of euros: Since individuals holding euros expect the currency to depreciate in
the near future they sell (supply) the euros today in an attempt to avoid the loss in the
future.


3. What do the plus signs and minus signs signify in the Canadian balance of payments
statement? Which of the following items appear in the current account and which appear in
the capital and financial account? (a) Canadian purchases of assets abroad; (b)Canadian
services imports; (c) Foreign purchases of assets in Canada; (d) Canadian good exports, (e)
Canadian net investment income. Why must the current account and the capital and financial
account sum to zero? LO18.2
Answer:
The net sales of official reserves in the foreign exchange market show up as a plus (+). The
plus sign (+) indicates a credit to Canada’s balance of payments. The negative sign (-)
indicates a debit to Canada’s balance of payments.
a. Canadian purchases of assets abroad: current account
b. Canadian services imports: current account
c. Foreign purchases of assets in Canada: capital and financial account
d. Canadian good exports: current account
e. Canadian net investment income: current account
The balance on the current account and the balance on the capital and financial account must
always sum to zero because any deficit or surplus in the current account automatically creates
an offsetting entry in the capital and financial account. People can only trade one of two
things with each other: currently produced goods and services or preexisting assets.
Therefore, if trading partners have an imbalance in their trade of currently produced goods
and services, the only way to make up for that imbalance is with a net transfer of assets from
one party to the other.


18-2

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller mizhouubcca. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$42.37. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80364 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$42.37
  • (0)
  Add to cart