Recall the Application about how worldwide trade has affected the U.S. auto industry to answer the following question(s). According to this Application, over the past few years there has been a ________ increase in ________ of automobile parts from outside the United States and Canada.

The purpose of the commitment by the Fed to keep the federal funds rate at zero for a long period of time is to

A) lower the long term interest rates. B) lower the short term interest rates. C) increase the long term interest rates. D) increase the short term interest rates.

In the above figure, when price is below E, this firm should

A) lower prices. B) continue to operate as-is. C) attempt to lower ATC and to raise AVC. D) shut down.