The political wisdom of choosing a tariff acceptable to the ...

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The political wisdom of choosing a tariff acceptable to the median U.S. voter is
 
  A) a good example of the principle of the second best.
  B) a good example of the way in which actual tariff policies are determined.
  C) a good example of the principle of political negotiation.
  D) not evident in actual tariff determination.
  E) usually evident in actual tariff determination.

Question 2

In order to infer expected future exchange rates, we must have a forward exchange market in a currency.
 
  Indicate whether the statement is true or false

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Answer to Question 1

D

Answer to Question 2

FALSE
Explanation: The interest differential between the interest rates on that currency and other currencies would allow us to infer expected future exchange rates, i.e., iD - iF = F - S/S.