Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, the firm provides service to

With fixed exchange rates, an increase in the foreign inflation rate, with constant income and domestic credit, will lead to

A) a change in the exchange rate. B) an increase in international reserves. C) a decrease in international reserves. D) no change in international reserves.

One should expect the forward exchange market to flourish

A) under a fixed exchange rate regime. B) under a flexible exchange rate regime. C) under neither fixed nor flexible exchange rate regimes. D) under both fixed and flexible exchange rate regimes. E) only under a gold standard.