In the foreign exchange market, an increase in the U.S. interest ...

[penza]

In the foreign exchange market, an increase in the U.S. interest rate leads to ________ in the exchange rate because the supply of dollars ________.
 
  A) a fall; decreases
  B) a rise; increases
  C) a rise; decreases
  D) no change; does not change
  E) a fall; increases

Question 2

During a demand-pull inflation, if the Fed tries to maintain a level of real GDP above potential GDP, the AD curve will ________ and the AS curve will ________.
 
  A) not shift; shift rightward continuously
  B) shift rightward continuously; shift rightward continuously
  C) shift rightward once; shift rightward continuously
  D) shift rightward continuously; not shift
  E) shift rightward continuously; shift leftward continuously

[Ddddd]

Answer to Question 1

C

Answer to Question 2

E

[penza]

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