The substitution effect refers to a change in the actual income of a potential consumer

Refer to the above figure. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new long-run equilibrium is given by point

A) A. B) B. C) C. D) D.

When a country's nominal exchange rate depreciates, the price of

A) that country's goods abroad increases. B) that country's goods abroad decreases. C) foreign goods sold in the country decreases. D) that country's goods produced and sold at home decreases.