In our modern economy, the adjustment process necessary to eliminate a recessionary gap is very rapid.

Assume that there is an increased demand in the United States for European wines. If all other factors are held constant, this change will result in

A) an increase in the exchange rate for euros. B) an appreciation of the dollar. C) a movement along the demand curve for euros. D) a decrease in the value of the euro.

The monopolistic competitor differentiates its product and gets people to buy their product by providing better (1) ______, (2) ______, and (3) ______.

Fill in the blank(s) with the appropriate word(s).