A permanent increase in the domestic money supply Group of answer choices must ultimately lead to a proportional decrease in E, and, therefore, the expected future exchange rate must rise proportionally. must ultimately lead to a proportional decrease in E, and, therefore, the expected future exchange rate must decrease proportionally. must ultimately lead to a proportional rise in E, and, therefore, the expected future exchange rate must rise more than proportionally. must ultimately lead to a proportional rise in E, and, therefore, the expected future exchange rate must rise less than proportionally. must ultimately lead to a proportional rise in E, and, therefore, the expected future exchange rate must rise proportionally.

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?