Multinational companies are concerned about exchange rate risk

Lesley buys 6 cappuccinos per week when her income is $900 per week and buys 8 cappuccinos per week when her income is $1100 per week. For Lesley, cappuccinos are a(n) ________ good

A) normal B) luxury C) inferior D) essential E) substitute

If Slovenia is a small country in world trade terms, then if it imposes a large series of tariffs on many of its imports, this would

A) have no effect on its terms of trade. B) improve its terms of trade. C) deteriorate its terms of trade. D) decrease its marginal propensity to consume. E) increase its exports.