Q1. If the impact of the U.S. imposed on Japan "voluntary export restraint' of passenger cars to the U.S. from 2,000,000 units of 1991 to 1,600,000 units a year for the next 5 years will be a short term average price increase of 22.296%. What should Honda and Toyota do to manage this short term average price increase?
Q2. In the country of Labassecour, the velocxity of money is constant. Real GDP grows by 5% per year, the money stock grows by 14% per year, ant the nominal interest rate is 11%. What is the real interest rate?