Suppose there are two countries (country A and country B) each with its own currency (Currency A and Currency B). Suppose the exchange rate is expressed in terms of amount of Currency A needed to get Currency B. A weakening of Currency A would show up as

Which of the following equations is correct?

A) assets = liabilities ? net worth B) assets = liabilities + net worth C) liabilities = assets + net worth D) net worth = liabilities + assets

Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries with a "Buy Canadian" provision

This policy, similar to the original "Buy American" provision in the 2009 U.S. stimulus bill, is likely to cause A) Canadian companies to pay lower prices for protected products. B) exporting countries to retaliate by placing trade barriers on Canadian imports. C) most countries to reduce their own trade barriers to be able to better compete with Canadian imports at home. D) Canadian manufacturers to become more efficient.