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ECON-1012-B-Introduction to Macroeconomics

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When is a country a creditor nation?
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If the price of a burger is $2.90 Canadian in Toronto and $3 U.S. in New York, and if purchasing power parity holds, what is the exchange rate?
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Which of the following events in the foreign exchange market shifts the supply curve of Canadian dollars rightward? 
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In the foreign exchange market for Canadian dollars, which of the following events will definitely raise the Canadian dollar exchange rate?
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The expected future exchange rate increased. What happens today in the foreign exchange market?
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When will households choose to increase saving?
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When the real interest rate falls or expected profit decreases, what happens to the demand for loanable funds?

A fall in the real interest rate ________ the demand for loanable funds curve, and a decrease in expected profit ________ the demand for loanable funds curve.
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Table 7.2.2

Real interest rate

(percent per year)
Loanable funds demanded

(trillions of 2012 dollars)
Loanable funds supplied (trillions of 2012 dollars)
2108
399
4810
5711
6612
7513
8414

Refer to Table 7.2.2, which gives data about a loanable funds market. If firms plan to decrease their investment by $1.0 trillion at each real interest rate, what is the new equilibrium real interest rate?
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What is the economist's term for the tendency for private saving to increase in response to growing government deficits?
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At the beginning of the year, Tom's Tubes has capital of 5 tube-inflating machines. During the year, Tom scraps 2 old machines and purchases 3 new machines. What is Tom's net investment for the year?
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