Country X frequently engages in trade flows with the U. S. (such as imports and exports). Country Y frequently engages in financial flows with the U. S. (such as financial investments). Everything else held constant, an increase in U. S. interest rates would affect the exchange rate of Country X's currency more than the exchange rate of Country Y's currency.

a. True
b. False

Suppose life expectancy in years (l) is a function of two inputs, health expenditures (h) and nutrition expenditures (n) in hundreds of dollars per year. the production function is upper l equals ch superscript 0.40 baseline upper n superscript 0.60l=ch0.40n0.60. beginning with c = 1, a health input of $400400 per year (hequals=44) and a nutrition input of $400400 per year (nequals=44), show that the marginal product of health expenditures and the marginal product of nutrition expenditures are both decreasing. the marginal product of health expenditures when h goes from 44 to 55 is nothing, and the marginal product of health when h goes from 66 to 77 is nothing. (round your answers to three decimal places.)