The figure above shows a monopolistically competitive firm in the short run. During the transition to the long run, the demand curve will shift ________ and the MR curve will shift ________

In the above figure, between 5 and 10 units per hour, the firm experiences

A) economies of scale. B) diseconomies of scale. C) constant returns to scale. D) decreasing total fixed costs.

An increase in the domestic one-year interest rate expected to occur in, say, two years will, all else fixed, have which of the following effects in a flexible exchange rate regime?

A) The real exchange rate will increase with no change in the nominal exchange rate. B) The nominal exchange rate will increase with no change in the real exchange rate. C) Both the real and nominal exchange rate will increase. D) No change in either the nominal or real exchange rate.