When the exchange rate appreciates in the short run and then depreciates to its original level in the long run, it implies that the foreign money supply has:

Opportunistic behavior by oligopolies means

A) that firms cooperate in both the long run and in the short run to prevent others from entering the industry. B) that firms cooperate in the short run for current gains. C) that firms refuse to cooperate in the short run. D) that firms refuse to honor their product guarantees.

If the Fed wanted to target price stability, meaning zero inflation, why should it set a target rate of inflation of around one percent?

What will be an ideal response?