Suppose people buy more of good 1 when the price of good 2 falls. These goods are

In the long run, the total variable cost of a firm:

a. is equal to its total fixed cost. b. is equal to its total cost. c. is equal to its average fixed cost. d. is more than its total fixed cost. e. is less than its total cost.

If the exchange rate is defined as the price of the foreign currency in terms of the domestic currency, an increase in the exchange rate:

a. increases domestic demand for foreign goods. b. makes domestic goods cheaper in the foreign markets. c. lowers net exports. d. lowers aggregate expenditure on domestic goods. e. increases the domestic country's external debt burden.