Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price. What is the profit earned under this pricing scheme?

All else equal, an increase in the base country's interest rate should cause a(n) ____ in the interest rate of a country that fixes its exchange rate to the base country.

A) decline B) negligible impact C) increase D) change in the exchange rate regime

When all relevant information is used to forecast inflation, the resulting forecast is called

A) a rational expectation. B) a natural expectation. C) an expected forecast. D) an expansionary expectation. E) the expected expectation.