In order for a Pareto improvement to occur, someone must suffer a loss so that others may benefit from the improvement

When exchange rates are fixed and the foreign nation's interest rate increases, what happens next?

A) The home nation's IS curve shifts out because of a depreciation and an increase in the trade balance. B) The home nation's LM curve shifts right, and its interest rate falls. C) Fixed exchange rates force the home nation to raise its interest rates. D) The home nation and the foreign nation are always in equilibrium, so no changes occur.

A decrease in the price of a firm's output will shift the firm's demand curve for labor to the right, other things being equal

a. True b. False Indicate whether the statement is true or false