If Canada imposes a tariff on bananas and if none are grown in Canada, this tariff has

If there is a decrease in taxes on business firms in a small open economy, it causes the current account to ________ and the equilibrium amount of saving to ________

A) fall; fall B) rise; remain unchanged C) fall; remain unchanged D) rise; fall

If the U.S. dollar depreciates, it means that

a. the value of the U.S. dollar has increased. b. the value of foreign exchange has decreased. c. fewer U.S. dollars are required to purchase foreign exchange. d. more U.S. dollars are required to purchase foreign exchange. e. exports will immediately fall.