Suppose that the dollar real exchange rate falls by 10% against the euro, 20% against the pound, and 25% against the yen. If the United States trades equally with each country, what is the percentage decline in the real effective exchange rate?

In the above figure, what is the amount of the tax per compact disc?

A) $10 B) $20 C) $30 D) $40

If a rise in the price of good B increases the quantity demanded of good A

A) A and B are substitutes. B) A and B are complements. C) A is a substitute for B, but B is a complement to A. D) B is a substitute for A, but A is a complement to B.