Over a month in late 2008, the Federal Reserve Bank reduced the ...

[dmcintosh]

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.

[ntsoane kedibone]

Answer to Question 1

A

Answer to Question 2

D