If the nominal interest rate is 4 percent and the real interest rate is 7 percent, then the inflation rate is

To raise economic development, developing countries should

A) focus on producing service goods. B) produce goods that are capital intensive and not labor intensive. C) not focus on economic growth. D) focus on their comparative advantage.

Advertising costs and other selling costs are

A) efficient. B) fixed costs. C) variable costs. D) marginal costs. E) considered as part of demand because they affect the demand for the good.