Refer to Figure 4-3. What area represents consumer surplus at P2?

To maintain a fixed exchange rate via intervention in the markets, a government should:

a. be ready to crack down on illegal traders. b. be ready to buy the home currency with foreign currency reserves when the home currency's value declines. c. be ready to sell the home currency when the home currency's value declines. d. be ready to borrow funds from international banks when the home currency's value declines.

The region of the U.S. that benefited least from and fought hardest against raising tariffs in the first half of the nineteenth century was

(a) New England. (b) the Middle Atlantic states. (c) the South. (d) the West.