An increase in ________ tends to increase ________ and therefore increase ________

The firm in the figure above is in monopolistic competition. It will set a price equal to

A) $1. B) $2. C) $3. D) more than $3.

Net foreign investment minus net foreign portfolio investment is equal to

A) the balance of trade. B) net foreign financial investment. C) net foreign direct investment. D) capital outflows.