Change in U.S. policy can lead to changes in inflationary expectations, interest rates, and exchange rates simultaneously as they all adjust to new equilibrium levels

The interest rate, as it appears on paper in a contract, is the:

A. nominal interest rate. B. short-term interest rate. C. real interest rate. D. long-term interest rate.

The figure above shows the market for polio vaccination in Africa

a) If the market is competitive and left unregulated, how many doses of vaccine will be administered? b) If the Melinda and Bill Gates Foundation underwrites the cost of the vaccine by paying for a large fraction of the preparation and delivery cost, what will happen to the number of doses administered? Why?