Refer to above figure. In the absence of a tariff and in the presence of trade, what is the country's consumer surplus?
What will be an ideal response?
Question 2
Using year-by-year data from 1987-2007 shows that
A) there is a strong positive relation between average Latin American money-supply growth and inflation.
B) there is a strong negative relation between average Latin American money-supply growth and inflation.
C) there is a strong positive relation between average Latin American money-supply growth and deflation.
D) it is difficult to find a strong positive relation between average Latin American money-supply growth and inflation.
E) there is a weak positive relation between average Latin American money-supply growth and inflation.
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