Export embargoes cause greater losses to consumer surplus in the ...

[Tirant22]

Export embargoes cause greater losses to consumer surplus in the target country
 
  A) the lesser its initial dependence on foreign produced goods.
  B) the more elastic is the target country's demand schedule.
  C) the more elastic is the target country's domestic supply.
  D) the more inelastic the target country's supply.
  E) the larger the target country's labor force is.

Question 2

Deviations from interest rate parity occur due to
 
  A) transaction costs.
  B) government controls.
  C) political risk.
  D) All of the above.

[diesoon]

Answer to Question 1

D

Answer to Question 2

D