If a monopolistically competitive firms incurs an increase in fixed costs, its price will rise and its output will fall

Which of the following is a question answered with normative economic reasoning?

A) If the college provided less financial aid for out-of-state students, would more in-state students benefit? B) If the college offers free textbooks for students, will more students read their textbooks? C) If the college increased its enrollment requirements, would class size decline? D) Should the college increase tuition to fund its athletic programs?

Which of the following would cause the current account to decrease?

A) an increase in the nominal exchange rate, E B) an appreciation of the home currency C) an increase in disposable income D) an increase in foreign prices, P E) a decrease in domestic prices, P