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Explain how expansionary monetary policy

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1. Crude oil price has increased more than 50% since last year. If crude oil is considered as one of the Canadian major export products, how this price increase could affect the Canadian dollar exchange rate and the Canadian other export-oriented businesses? Explain your answer using example numbers.

2. Explain why economies cannot have zero unemployment rate.

3. Suppose that a person's nominal income increases from $60,000 to $64,000 and the CPI rises from 100 to 105. How would the person's real income change? Show your calculations.

4. Explain how an Expansionary Monetary Policy could impact the foreign exchange rate and importing businesses.

Reference no: EM133246052

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