Bananas in the European Union often retail for twice more than they do in the U.S. What is the most likely explanation for this fact?
A) A complicated system of tariffs and quotas that the EU has imposed to control the imports of bananas.
B) More significant freight costs to ship bananas from Central America.
C) Larger markup by European retailers.
D) None of the above.
Question 2
A fixed exchange rate system crisis may be accompanied or followed by
A) unexpected gains of international reserves.
B) revaluation of a currency.
C) devaluation of a currency.
D) gains in comparative advantage.
E) deflationary pressures within the country.
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