Suppose that Canada decreased its tariffs on US produced steel. All else being e
ID: 2618737 • Letter: S
Question
Suppose that Canada decreased its tariffs on US produced steel. All else being equal, this will increase Canada's balance of trade. O True O False QUESTION 2 Assume that US GDP growth rate is expected to be 3% over the next 12 months while Japan's GDP growth rate is predicted to be 5% over the same time period. Which of the following will occur if the GDP forecasts for both nations are accurate, all else being equal? O The US BOT will decrease. O The US BOT balance will increase O Japan's capital account balance will decrease. Japan's BOT will increase. Cannot be determined. QUESTION 3 From 2012-2013, the Hong Kong dollar appreciated by 4% from the Japan's point of view. Al else being equal, this would increase Hong Kong's balance of trade. O True False Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All AnswersExplanation / Answer
1.
If Canada decrease tarrif on US steel product then supply of US steel prduct in canada is increase and price of stel product in canada would also decrease. in this case demand of US steel product increase in Canada. SO import of US steem product increase in canada, so balance of trade (Export minus Import) decrease in canada.
So, given statement is false.
2.
A GDP includes various factors such as, Consumption, Government expenditure, Inocme of household and corporate and import and export (balance of trade). So, if GDP growth rate in USA is 3% and GDP growth rate in Japan is 5% does not means this growth is supported by only balance of trade. there might be other factors that plays role in growth of GDP.
SO, from from given information it cannot be determined.
Option (E) is correct answer.
3.
In year 2012--2013 Hongkong Dollar appreciated against Japanese yen. then if all other factor remains constant then balance of trade for Hongking must be increases.
Statement is true.