The figure above shows the demand and cost conditions for a firm with two plants. In order to maximize profit, how many units of output should the firm produce?

The main item in the current account balance is

A) net interest income. B) net transfers. C) net exports. D) net taxes.

Using the money demand and money supply model, an increase in money demand would cause the equilibrium interest rate to

A) increase. B) decrease. C) not change. D) increase, then decrease.