If the U.S. exchange rate rises, the price to foreigners of U.S.-produced goods and services ________ and the quantity of U.S. dollars demanded ________.
A) rises; decreases
B) rises; increases
C) falls; decreases
D) falls; increases
Question 2
The balance owed on credit cards in the United States in 2014 was 880 billion. When consumers pay off this balance in full,
A) M1 will decrease by 880 billion.
B) M1 will remain unchanged but M2 will decrease by 880 billion.
C) neither M1 nor M2 will change.
D) M1 will increase by 880 billion.
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