Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for women's clothing. Which panel best describes what happens in this market when the wages of seamstresses rise?

People know that the inflation rate will decrease from 7 percent to 3 percent. As a result

A) the nominal interest rate falls by 4 percentage points. B) the nominal interest rate is constant. C) the nominal interest rate rises by 4 percentage points. D) the nominal interest rate equals 3 percent.

Refer to Figure 9.8. With no government interference, the country pictured will

A) import 500 tons of sugar. B) import 300 tons of sugar. C) import 200 tons of sugar. D) import no sugar. E) export sugar.