As of 2008, the members of the WTO account for 97 percent of the world's international trade

According to the rational expectations theory, monetary policy is fully anticipated and therefore only affects: a. the level of real GDP

b. the level of real investment. c. the price level. d. the level of real consumption. e. the level of exports.

A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P = 40 ? Q and a 50 percent chance it will be P = 60 ? Q. The marginal cost of the firm is MC = 3Q. What is the expression for the expected marginal revenue function?

A. E(MR) = 30 ? 2Q B. E(MR) = 50 ? 2Q C. E(MR) = 60 ? 2Q D. E(MR) = 40 ? 2Q