By reducing its output compared to a competitive market, a monopoly leads to

The price system

A) is the voluntary exchange system used in the United States. B) is old fashioned and is no longer used. C) is used only in countries that are developing. D) is used to set resource prices only.

Assume that the nominal exchange rate increases by 2%. If prices (both domestic and foreign do not change), we know that

A) domestic goods are now relatively cheaper. B) domestic goods are now relatively more expensive. C) foreign goods are now relatively cheaper. D) both B and C