Which of the following serves as an automatic stabilizer in the economy?

If UIP holds, the interest rate is 4%, and the foreign currency is expected to appreciate by 3%, then the foreign interest rate is approximately

a) 1% B) 3% C) 7% D) none of the above

The competition faced by firms in an oligopoly with differentiated products is higher than that faced by firm(s) in ________

A) a duopoly with homogeneous products B) perfect competition C) monopolistic competition D) monopoly