The late Hugo Chavez, Venezuela's former president, proposed that ...

[Diane]

The late Hugo Chavez, Venezuela's former president, proposed that the independence of the Venezuelan central bank be eliminated.
 
  Given the research on the relationship between central bank independence and inflation, we should expect this event to cause inflation to ________ and the real exchange rate to ________ between the two counties. (Assume the nominal exchange does not change, and that the United States is the domestic country).
  A) rise in Venezuela relative to the United States; fall
  B) rise in Venezuela relative to the United States; rise
  C) fall in Venezuela relative to the United States; fall
  D) fall in Venezuela relative to the United States; rise

Question 2

What is marginal cost? How is it measured?
 
  What will be an ideal response?

[Hikerman221]

Answer to Question 1

A

Answer to Question 2

Marginal cost is the opportunity cost of producing one more unit of a good or service. Along a PPF marginal cost is reflected in the absolute value of the slope of the PPF. In particular, the magnitude of the slope of the PPF is the marginal cost of a unit of the good measured along the x-axis. As the magnitude of the slope changes moving along the PPF, the marginal cost changes.

[Diane]

Thank you

[Hikerman221]

Happy to help you