Evidence suggests that the depth and speed of reforms did not matter for the success of transition in the formerly socialist countries.

Holding the nominal interest rate constant, a ________ in the expected rate of inflation tends to ________ the real interest rate

A) rise; increase. B) fall, decrease. C) fall; increase. D) rise; improve.

If two countries are very different in relative factor abundance, then empirical support for which of the following would less likely?

A) the Factor Price Equalization Theorem B) the Heckscher-Ohlin Theorem C) the Law of One Price D) the Law of Demand E) the Gravity Theorem