Refer to the information provided in Figure 7.10 below to answer the question(s) that follow.  Figure 7.10Refer to Figure 7.10. If the firm's level of total cost is represented by the given isocost line, the firm's optimal combination of capital and labor is given by

It is possible for an economy to keep its currency overvalued against the dollar if:

A) it sells the domestic currency in the foreign exchange market. B) it has substantial domestic currency reserves. C) it buys the dollar in the foreign exchange market. D) it has substantial dollar reserves.

When households have very low savings ________

A) investment decreases B) they are less able to cope with severe economic downturns C) bankruptcies increase D) all of the above E) none of the above