When a tax is imposed on a good, the result is always a shortage of the good

When we measure the impact of exchange rate changes on a nation's trade balance, the bilateral exchange rates explain only part of the change. To assess the overall change, we need to calculate:

a. the home multilateral exchange rate, or real effective exchange rate. b. a nation's income versus income changes in the rest of the world. c. a nation's marginal propensity to consume imports. d. the movement over time of the trade balance along with long-run expectations of the exchange rate.

A market has ten firms, whose market shares are given in the table above

a) If firms I and J wanted to merge, according to the Department of Justice guidelines, would the Department of Justice challenge the merger? b) If firms A and B wanted to merge, according to the Department of Justice guidelines, would the Department of Justice challenge the merger?