Rent seeking is an attempt to
a. use the government for individual benefit at the expense of others. regulatory capture is an example of this, where a regulatory agency makes decisions benefiting the firm being regulated.
b. use the government to improve economic efficiency. regulatory capture is an example of this, where a regulatory agency improves economic efficiency.
c. use the government for individual benefit at the expense of others with rational ignorance. regulatory capture seeks to achieve the same objective with logrolling.
d. use the government to improve economic efficiency. regulatory capture is an example of government failure, where the government reduces economic efficiency.
e. represent underlying voter preferences with majority voting. regulatory capture is an attempt to represent underlying voter preferences with government regulations.

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?