The republic of gizmovia wants to maintain the exchange rate of its currency, the gizmo, at $0.50, but the current exchange rate for the gizmo is $0.40. if gizmovia uses monetary policy to bring the exchange rate for the gizmo to $0.50, it should interest rates, which will capital outflows of gizmos.
a) decrease; decrease
b) decrease; increase
c) increase; increase
d) increase; decrease

Question 3 options: ps.55 four corners is an ibc company that sells delicious navajo tacos in the crossroads food court. part of their success can be attributed to the freshly fried indian bread that is used not only for the tacos, but also for dessert items. as demand grows the fry-bread process is becoming a bottleneck. operations management for the company is looking at two different process options to replace the highly manual process currently being used. option 1 (medium automation) would cost $175 to implement whereas option 2 (high automation) would cost $350. with option 1 the variable cost per fry bread produced would be $0.20. the variable cost for option 2 would be $0.09 per fry bread. at what volume (demand) of fry breads is the cost for the two options the same? (display your answer to two decimal places.)