In the "cost of capital channel" of monetary policy, a lower interest rate __________ spending

The above figure shows the market for buckets of golf balls at the driving range. A new leisure time tax is placed on suppliers in this market, shifting the supply curve from S0 to S1. The amount of this tax is ________ per bucket of golf balls

A) $4 B) $2 C) $2.50 D) $1 E) $3

If interest rates in Canada rise above those in the rest of the world, then

a. the demand for Canadian dollars decreases b. exports from Canada to other countries increases c. imports into Canada from other countries decreases d. it raises Canada's exchange rate and this may result in a deficit on Canada's current account e. the balance of payments becomes negative