A country produces only cans of soup and ink pens. If the country ...

[Chelseaamend]

A country produces only cans of soup and ink pens. If the country produces on its bowed outward PPF and increases the production of cans of soup, the opportunity cost of additional
 
  A) cans of soup is decreasing.
  B) ink pens is increasing.
  C) cans of soup is increasing.
  D) cans of soup remains unchanged.
  E) More information is needed to determine what happens to the opportunity cost.

Question 2

Inflation ________ the cost of holding money and ________ the after-tax real interest rate.
 
  A) decreases; increases
  B) increases; decreases
  C) increases; increases
  D) decreases; decreases
  E) increases; does not change

[tranoy]

Answer to Question 1

C

Answer to Question 2

B

[Chelseaamend]

Excellent

[fatboyy09]

Gracias!