George Webb Restaurant collects on the average $5 per customer at its breakfast & lunch diner. Its variable cost per customer averages $3, and its annual fixed cost is $40,000 . If George Webb wants to make a profit of $20,000 per year at the diner, it will have to serve__________ customers per year

When the ratio of domestic prices to foreign prices rises:

A) the real exchange rate depreciates. B) the real exchange rate appreciates only when the nominal exchange rate appreciates. C) the real exchange rate appreciates only when the nominal exchange rate depreciates. D) the real exchange rate appreciates even when the nominal exchange rate is constant.

The crowding-out effect refers to

A. an increase in the consumption of imported goods at the expense of domestic goods. B. a decrease in consumer spending caused by a decrease in consumer confidence. C. an increase in the consumption of domestic goods at the expense of imported goods. D. a decrease in consumption and investment caused by an increase in government borrowing.