In the above figure, the total variable cost curve is curve

If a country's currency ________ the dollar, its exchange rate is fixed

A) is exchanged in currency markets for B) has a floating exchange rate value which is equal to C) depreciates against D) is pegged to

The nominal interest rate ________

A) makes no allowance for inflation B) is a percentage of the amount borrowed C) is the rate that most banks advertise D) all of the above E) none of the above