Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).Recall the Application. In most cases where satellite TV service is introduced in an area with cable TV service, if the price of cable TV decreases, then consumer surplus (in the cable TV market):

It is difficult to determine expected real rates of interest because

A) we never know exactly what inflation rates people anticipate. B) we cannot measure the nominal interest rate. C) the inflation rate is a subjective measurement. D) we cannot measure the inflation rate.

Under normal circumstances, the ratio of a country's export prices to its import prices should

a. increase as trade increases b. decrease as trade increases c. fluctuate as trade increases d. remain constant as trade increases e. none of the above