The short-run equilibrium output of a competitive firm is found by equating marginal cost with price

If real interest rate in Country X increases relative to the real interest rate in Country Y and there are no trade barriers between the two countries, then for Country X which of the following will be true of its capital flow, the value of its currency, and its exports?

(a) Inflow / Appreciation / Increase (b) Inflow / Appreciation / Decrease (c) Inflow / Depreciation / Increase (d) Outflow / Depreciation / Increase (e) Outflow / Appreciation / Decrease

Assume individuals consider only the short run effects of changes in future macro variables when forming expectations of future output and future interest rates. Suppose individuals expect the central bank to pursue a monetary expansion in the future. Given this information, we know with certainty that

A) current output and the current interest rate will both increase. B) current output will decrease. C) the current interest rate will decrease. D) the current output effects are ambiguous.