In the market for euros, a decrease in U.S. real interest rates tends to
A. decrease equilibrium price.
B. increase excess supply.
C. increase equilibrium price.
D. cause no change in equilibrium price.
Answer: C
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You offer an extended warranty for your product that is purchased by a few customers. If the product typically fails 2% of the time, the claim rate will exceed 2% of warranty purchasers because
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