Marginal analysis is the comparison of additional benefits with the additional costs.

In the diagram to the right, point A provides the ______, point B the ______, and point C the ______.

A. market clearing price; equilibrium point; shortage B. equilibrium price; market equilibrium' surplus C. equilibrium price; market equilibrium; equilibrium quantity D. equilibrium price; surplus or shortage; equilibrium quantity

Suppose the market for dollars is in equilibrium, then the expected future exchange rate rises. What effect does this change have on the current exchange rate?

A) It will rise. B) It will fall. C) It will remain unchanged. D) Because both the supply and demand curves shift, the effect on the exchange rate is unpredictable.