Which of the following is the most common goal for central banks of industrialized countries?

An increase in the exchange rate value of the U.S. dollar, relative to the Japanese yen, will cause U.S. imports from Japan to

a. increase and exports to Japan to decrease. b. increase and exports to Japan to increase. c. decrease and exports to Japan to decrease. d. decrease and exports to Japan to increase.

A monopoly firm operates with declining average cost. If regulators impose marginal cost pricing, the market will

A. remain a monopoly but behave like a perfectly competitive industry. B. become perfectly competitive. C. be entered by additional firms but will not necessarily become perfectly competitive. D. maximize consumer surplus.