How can inflation affect the international competitiveness of a country?
a. Through an increase in nominal interest rates.
b. Through an increase in real interest rates.
c. The competitiveness is harmed by any inflation rate that is higher than in other countries, as long as it is offset by exchange rate changes.
d. The competitiveness is harmed by any inflation rate that is higher than in other countries, as long as it is not offset by exchange rate changes.
e. Inflation is a domestic issue and therefore does not affect the international competitiveness
.D
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Who was Jean-Baptiste Say? How does his theory (or "law") compare with that of John Maynard Keynes?
What will be an ideal response?
If a regulatory commission sets the regulated price equal to marginal cost for a natural monopoly,
a. losses will result b. government subsidies will be unnecessary c. the firm will earn economic profits d. new firms will want to enter e. resource use will not be optimal