A general and ongoing rise in the prices of goods and services in an economy is called inflation

Which term refers to a legally established maximum price that firms may charge?

A) a tariff B) a price ceiling C) a price floor D) a subsidy

In an open economy under flexible exchange rates, a reduction in the interest rate will cause a reduction in which of the following?

A) investment B) the exchange rate, E C) net exports D) all of the above E) none of the above