Over a month in late 2008, the Federal Reserve Bank reduced the interest rate by 1 percentage point.
Given that the United States operates under a ________ exchange rate regimes, the primary purpose of these changes was ________ exchange rate of each currency. A) flexible; not designed to influence
B) flexible; designed to influence
C) fixed; designed to influence
D) fixed; not designed to influence
Question 2
The quantity theory of money asserts that an increase in the quantity of money
A) will decrease the price level by an offsetting amount.
B) by n percent will lead to an increase in the price level by n + 1 percent.
C) will lead to an equal percentage increase in real GDP.
D) will lead to an equal percentage increase in the price level.
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