A graph of total profits is always likely to be positively sloped throughout its length.

The expectation of future devaluation causes a balance of payments crisis marked by

A) a sharp rise in reserves and a fall in the home interest rate below the world interest rate. B) a sharp fall in reserves and an even bigger fall in the home interest rate below the world interest rate. C) a sharp fall in reserves and a rise in the home interest rate above the world interest rate. D) a sharp rise in reserves and an even greater rise in the home interest rate above the world interest. E) a sharp rise in reserves and a rise in the home interest rate to the level of the world interest.

If some consumers think that two detergents have differing qualities, such as brand-name vs. private label detergents, wheres other consumers know that the detergents are identical, then the detergent producer can

A) reduce its costs. B) engage in a special type of price discrimination. C) avoid moral hazard. D) None of the above.