The costs of inflation ________ when inflation is more rapid and ________ when inflation is more unpredictable

According to the gravity model, a characteristic that tends to affect the probability of trade existing between any two countries is

A) their cultural affinity. B) the average weight/value of their traded goods. C) their colonial-historical ties. D) the distance between them. E) the number of different product varieties produced by their industries.

Firms seek to differentiate their product

A) to avoid state and federal regulation. B) to create an illusion of value. C) to strengthen their demand and to make it more inelastic. D) to strengthen their demand and to make it more elastic.