Discussion+Questions

1. What is demand? What is supply? Which one do you understand more and why?

2. Explain PPC.

3. Why do we have two sector CFC? What is three sector CFC?

4. Due to an international financial crisis, Canada experiences a significant inflow of funds from other countries. Explain the effect that this inflow of funds will have on the following: a. The international value of the Canadian Dollar b. Canadian net exports

5. A movement toward a unified monetary policy within the European Union has led to an increase in the real interest rates in member countries, but not in the US. Explain how this increase in real interest rates will affect each of the following: a. purchases of US financial assests by foreigners b. the international value of the US dollar c. US exports d. US imports