Refer to Scenario 2. What is the estimated regression equation for determining the market value of houses?

An increase in the interest rates in a country:

A) reduces net exports. B) does not affect net exports. C) increases net exports. D) results in a an outflow of capital from the country.

If the above figure illustrated a perfectly competitive industry, the equilibrium market price would be equal to

A) $4. B) $7. C) $9. D) $11.