Refer to Figure 2-11. In the circular flow diagram, who are economic agents A and who are economic agents B?

Which of the following is a possible result of price confusion?

A. People are less able to take actions that mitigate the impact of monetary policy. B. Sellers will face pressure to provide more accurate pricing information. C. The price system becomes a less effective way to coordinate economic action. D. The signals that prices send become clearer and more necessary.

Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, these flows would have had the following effect on the financial account and monetary base

a. Financial account would rise and reserves account would fall. b. Financial account would not change and reserves account would fall. c. Financial account would not change and reserves account would not change. d. Financial account would fall and monetary base would not change. e. Financial account would fall and reserves account would rise.