Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 

If the marginal net utility of beer is negative, the consumer should buy more beer in order to increase the total utility

a. True b. False Indicate whether the statement is true or false

A particular brand of toothpaste costs 4 British pounds in London. The nominal exchange rate is .80 and the real exchange rate is about 1.16 . These numbers imply that the U.S. price of the same toothpaste is about

a. $5.79 b. $4.29 c. $3.70 d. $2.76