The monetary approach to interest rates assumes that the prices ...

[silviawilliams41]

The monetary approach to interest rates assumes that the prices of goods are ________, which implies that a country's currency will ________, when nominal interest rates ________ because of ________ expected future inflation.
 
  A) perfectly flexible; depreciate; increase; higher
  B) perfectly flexible; appreciate; increase; higher
  C) immutable; depreciate; increase; higher
  D) immutable; appreciate; decrease; higher
  E) absolutely inflexible; depreciate; decrease; higher

Question 2

The slope of a country's production possibility frontier is equal to ________ and the optimal production point is located where the slope is equal to ________.
 
  Assume that output of good Y is measured on the vertical axis, output of good X is measured on the horizontal axis, MPL is the marginal product of labor with a subscript indicating which good, P is the price of a good, and w is the wage rate. A) -MPLY/MPLX; -PX/PY
  B) -PX/PY; -MPLY/MPLX;
  C) -PX/w; -PY/w
  D) -MPLY/w; -MPLF/w
  E) -MPLX/MPLY; -PX/PY

[aadams68]

Answer to Question 1

A

Answer to Question 2

A

[silviawilliams41]

TYSM

[connor417]

Excellent