Which of the following would be most likely to induce Congress and the president to conduct expansionary fiscal policy? A significant

A result of an exchange rate depreciation, would occur as the spending patterns change in response to a change in the exchange rate.

a. expenditure switching from domestic to foreign products b. expenditure switching from foreign to domestic products c. expenditure switching from rural to urban producers d. terms-of-trade deterioration

If a perfectly competitive firm's average total cost is less than the price, then the firm

A) incurs an economic loss. B) makes an economic profit. C) makes zero economic profit. D) makes either zero economic profit or an economic profit depending on whether the marginal revenue is equal to or greater than the price. E) None of the above answers is correct because the relationship between the price and average total cost has nothing to do with the firm's profit.