Which of the following is not an upper-middle income country?

Suppose that there is an improvement in a country's terms of trade between 2010 and 2011. This improvement means that:

a. it can purchase more imports in 2011, with the same volume of exports as in 2010. b. it can purchase more exports in 2011, with the same volume of exports as in 2010. c. it needs to increase its exports in order to purchase the same volume of imports as in 2011. d. regarding its international trade, it is worse off in 2011 than it was in 2010.

The rational expectations hypothesis implies that discretionary macro-policy will:

a. be ineffective, even in the short run. b. be effective in the short run but ineffective in the long run. c. be effective both in the short run and long run. d. make it possible to trade-off a higher rate of inflation for a lower rate of unemployment.