When the Fed sells government bonds in the open market, interest rates will rise.

The principle involved in short-run uncovered interest parity is that home interest rates will be equal to:

A) the world equilibrium real rate of interest. B) the foreign interest rate minus foreign inflation. C) the foreign rate of interest plus the expected rate of depreciation of the home currency. D) the domestic nominal rate of interest plus domestic inflation.

The figure above shows a monopoly firm's demand curve. If the price and quantity of haircuts move from point t to point u, the monopoly's

A) total revenue will rise. B) total revenue will fall. C) total revenue will remain the same. D) marginal revenue will increase.