Q. Assume a series of forest fires reduces the supply of lumber which is an input in the production of wooden bats. Baseballs and wooden bats are complements. If the price of wooden bats increases, we can expect the:
Q. Suppose that the exchange rate on January 1 is 100 yens for a dollar. Suppose that over the year the Japanese inflation rate is 5%. If the exchange rate at the end of the year is 105 yens for a dollar then what would be the inflation rate be in the US?