MGEC61H3 Study Guide - Midterm Guide: National Order Of Quebec, Exchange Rate, Capital Account

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Part (a) (15 points) 1 point will be subtracted for each incorrect entry. Part (b) (5 points) (3 pts for showing work and providing explanation) In foreign wealth: a"s foreign wealth by 450 (1 pt) while c"s foreign wealth by 80 (1 pt): In foreign wealth = ka or. In foreign wealth = ca + capital account. Since in foreign wealth > 0 for a and c, these two countries are net buyer of foreign assets their foreign wealth . Ecmc61 midterm answer key summer 2011 (cid:222) (cid:222) Question 2 (20 points) ( 2 pts from the whole question for not having 4 decimal points) Part (a) (4 points: expected exchange rate, ee: (2 pts 1 pt for showing work & 1 pt for the answer) Exchange rate, e: (2 pts 1 pt for showing work & 1 pt for the answer)