APPLYING ECONOMIC THINKING 1. You have CDN$800 to spend during a beach vacation in Florida. How much in US dollars will

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APPLYING ECONOMIC THINKING
1. You have CDN$800 to spend during a beach vacation in Florida. How much in US dollars will you have to spend if the exchange rate is US$1.00 = CDN$1.30?
2.a. A British company wants to invest £5 million in Canadian government bonds. The exchange rate is £1.00 = CDN$1.70. How many dollars’ worth of Canadian bonds can the company buy?
b. The bonds pay the company CDN$200 000 in interest. How much will that convert to in pounds?
3. A tourist travelling in Italy converts CDN$2 000 into euros. How many euros will this tourist be able to spend if the exchange rate is CDN$1.00 = €0.66?
4. How would an appreciation of the Canadian dollar against the US dollar impact the following?
a. Canadian exporters
b. Canadian importers
c. US tourists visiting Canada