Monopolistically competitive firms can earn large profits in the long run

If wages and prices adjust slowly, we would expect expansionary monetary policy to be

A) more likely to result in a vertical short-run Phillips curve. B) less likely to reduce the natural unemployment rate. C) more likely to reduce inflation. D) more likely to affect the unemployment rate.

In foreign exchange markets, speculators help:

A. Decrease the influence of the futures market because their trades demand current payments B. Increase fluctuations in exchange rates because of wild buying and selling C. Decrease the value of most currencies because they tend to hedge the market D. Increase international trade because they absorb risk which others do not want to bear