Woody wants to open a pet store and needs to buy a building. Both the nominal interest rate and the inflation rate increase by 2 percent. Now, Woody
a. will not buy the building.
b. is more likely to buy the building

An overvalued domestic currency:

A) can be achieved by selling the domestic currency. B) harms all the economic agents in the country. C) makes imports less expensive for domestic consumers. D) benefits all the economic agents in the country.

Economists often focus on average behavior because it is easier to predict

a. True b. False