Which of the following groups are typically harmed by unexpected inflation?

The J curve implies that a real depreciation will cause

A) the nominal exchange rate to appreciate in the short run and depreciate in the long run. B) the nominal exchange rate to depreciate in the short run and appreciate in the long run. C) net exports to fall in the short run and rise in the long run. D) net exports to rise in the short run and fall in the long run.

Marginal damages

A. must always be considered in social marginal costs. B. must not be considered in social marginal costs. C. must sometimes be considered in social marginal costs. D. have nothing to do with social marginal costs.