Profits earned by foreign firms or governments under a quota are called:

________ in the expected future domestic exchange rate causes the demand for domestic assets to shift to the ________ and the domestic currency to appreciate, everything else held constant

A) An increase; right B) An increase; left C) A decrease; right D) A decrease; left

The switch to the use of ethanol in gasoline is driven primarily by its relatively lower price. Assuming a competitive market, what effect would this change have on the equilibrium price and output for gasoline?

A) Price rises, output falls. B) Price falls, output rises. C) Price rises, output rises. D) Price falls, output falls.