If a firm is facing elastic demand, then the firm should decrease price to increase revenue

If purchasing power parity holds, the exchange rate (e) can be expressed as a function of the domestic price (P) and the foreign price (P*) as

A) e = P - P*. B) e = P* - P. C) e = P* + P. D) e = P/P*.

Prudential regulation ________

A) requires that banks maintain the confidentiality of loan applications B) is administered by a specific insurance company C) is necessitated by the government's safety net for the banking system D) is an effective substitute for prudential supervision