Inflation targeting usually increases the uncertainty about the course of action of central banks, as perceived by the general public

The demand for euros in the foreign exchange market equals 8,000 - 2,000 e and the supply of euros in the foreign exchange market equals 3,000 + 3,000 e, where e is the nominal exchange rate expressed in U.S. dollars per euro. If the euro is fixed at 0.85 U.S. dollars per euro, then the euro is ________ and Euroland has a balance-of-payments ________.

A. overvalued; deficit of 750 euros B. undervalued; surplus of 750 euros C. undervalued; deficit of 750 euros D. overvalued; surplus of 750 euros

For the cost function C(Q) = 1000 + 14Q + 9Q2 + 3Q3, what is the marginal cost of producing the fourth unit of output?

A. $116 B. $42 C. $295 D. $230