Chapter 19, Problem 2TY

a.

To determine

To describe: The affect on US balance of payments, if the summer is spent travelling in Europe supposing that exchange rate remains fixed.

b.

To determine

To describe: The affect on the US balance of payments if a $20 birthday present is received from Canada from a relative supposing exchange rates are fixed.

c

To determine

To describe: The affect on the US balance of payments, if a new Honda is purchased from Japan supposing exchange rates remains fixed.

d.

To determine

To describe: The affect on US balance of payments, if a new Honda is purchased from Ohio, supposing exchange rates remains fixed.

e

To determine

To describe: The affect on US balance of payments, if stock is sold in Tokyo stock exchange supposing exchange rates remains fixed.