Which of the following would likely be traded in a monopolistically competitive market?

The major dilemma facing Boeing and Airbus is the

A) fact that neither will respond to the behavior of the other. B) certainty surrounding the reaction of each firm to the behavior of the other firm. C) fact that if each firm separately tries to maximize its profit, it might wind up with less profit that otherwise. D) competition from other firms that drives their economic profit to zero. E) fact that when they collude to maximize their profit, the other firm's profit might be larger than its profit.

If the nominal interest rate is less than the real interest rate, we know that

A) both the nominal or real interest rate must be negative. B) the nominal interest rate must be equal to expected inflation. C) expected deflation must be occurring. D) expected inflation must be positive. E) expected inflation must be zero.