In the case study in the text involving calculator production, the fact that each calculator produced added $10.30 to cost and $12 to revenue made clear the value of ____ in determining whether or not to suspend production.

A typical IMF stabilization package involves

(a) erecting barriers against foreign investment. (b) overvaluing the exchange rate. (c) liberalization of exchange controls. (d) a reduction in interest rates. (e) all of the above.

An increase in the expected rate of inflation is most likely to cause an increase in ________

A) the ex post real interest rate B) the ex ante real interest rate C) the nominal interest rate D) the expected real interest rate E) none of the above