Podcast
Questions and Answers
What is the total amount Toronto and Vancouver are projected to spend on infrastructure for the FIFA World Cup?
What is the total amount Toronto and Vancouver are projected to spend on infrastructure for the FIFA World Cup?
- $2 billion
- $500 million
- $750 million
- $1 billion (correct)
Which of the following best describes the nature of economic impacts from spending in one region to another within Canada?
Which of the following best describes the nature of economic impacts from spending in one region to another within Canada?
- Spending has a ripple effect across the economy. (correct)
- Spending only affects local businesses.
- Regional spending has no impact outside of the spending area.
- Only negative impacts are transmitted to other regions.
What multiplier is assumed in this scenario for the expenditure effect?
What multiplier is assumed in this scenario for the expenditure effect?
- 2
- 10
- 3
- 5 (correct)
How much will Canadian equilibrium expenditure and real GDP increase with a multiplier of 5 and a spending of $1 billion?
How much will Canadian equilibrium expenditure and real GDP increase with a multiplier of 5 and a spending of $1 billion?
Which statement accurately reflects the effects of spending on inter-regional economics?
Which statement accurately reflects the effects of spending on inter-regional economics?
Why is the assertion that the expenditure will have no effect outside Toronto and Vancouver deemed incorrect?
Why is the assertion that the expenditure will have no effect outside Toronto and Vancouver deemed incorrect?
How does the expenditure multiplier relate to overall economic impact?
How does the expenditure multiplier relate to overall economic impact?
Which factor is NOT a channel through which spending in one region can affect another?
Which factor is NOT a channel through which spending in one region can affect another?
How many Canadian dollars are needed to purchase one U.S. dollar on March 21, 2023?
How many Canadian dollars are needed to purchase one U.S. dollar on March 21, 2023?
What is the exchange rate for one Euro in Canadian dollars on March 21, 2023?
What is the exchange rate for one Euro in Canadian dollars on March 21, 2023?
Which of the following statements about buying goods in the U.S. is correct for the dates given?
Which of the following statements about buying goods in the U.S. is correct for the dates given?
What is the marginal propensity to consume (MPC) calculated from the given data for disposable income?
What is the marginal propensity to consume (MPC) calculated from the given data for disposable income?
What is the breakeven level of income based on the given data?
What is the breakeven level of income based on the given data?
What was the exchange rate for 1 Canadian dollar to Indian Rupees on March 21, 2022?
What was the exchange rate for 1 Canadian dollar to Indian Rupees on March 21, 2022?
What does the change in consumption expenditure divided by the change in disposable income represent?
What does the change in consumption expenditure divided by the change in disposable income represent?
Which of the following statements is correct regarding loanable funds?
Which of the following statements is correct regarding loanable funds?
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Study Notes
FIFA World Cup 2026 Hosting
- Toronto and Vancouver designated as Canadian Official Host Cities for FIFA World Cup 2026.
- They join 11 cities in the US and 3 in Mexico, marking the largest World Cup in history.
Economic Impact of Expenditures
- A combined expenditure of 1 billion dollars is planned for infrastructure improvement, including stadiums and transportation.
- Disagreement with the notion that spending will only affect these two cities; interconnected economic effects reach other Canadian regions.
- Spending increases demand for goods/services, influences labor mobility, and impacts production across Canada.
- Multiplicative effect of the expenditure multiplier set at 5; predicts a 5 billion dollar increase in Canadian equilibrium expenditure and real GDP (1 billion * 5).
Currency Exchange Rates Comparison (2022 vs 2023)
- March 21, 2022 Rates:
- 1.2593 CAD = 1 USD
- 1.3894 CAD = 1 Euro
- 1 CAD = 60.533 Indian Rupees
- March 21, 2023 Rates:
- 1 CAD = 0.72961 USD (approximately 1.37 CAD for 1 USD)
- 1 CAD = 0.67741 Euro (approximately 1.48 CAD for 1 Euro)
- 1 Indian Rupee = 0.01658 CAD
Shopping Expense Analysis
- In 2022, the Canadian dollar was stronger against the U.S. dollar (1.2593 CAD) compared to 2023 (1.37 CAD).
- Shopping in the U.S. would have been more cost-effective on March 21, 2022.
Analysis of Nevets’ Economy
-
Marginal Propensity to Consume (MPC):
- Calculated as the change in consumption expenditure divided by the change in disposable income.
- Between 100 and 200 billion disposable income, consumption increased by 70 billion; thus, MPC = 0.7.
-
Breakeven Level of Income:
- Breakeven occurs where disposable income equals consumption expenditure, noted at 500 billion.
Statement on Loanable Funds Market
- Examination required on whether the assertion regarding the source of investment financing from household savings is correct or incorrect; further analysis needed.
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