When the price level in France increases while the exchange rate ...

[rmenurse]

When the price level in France increases while the exchange rate and the price level in the United States remain the same, the result is
 
  A) U.S.-made goods become relatively cheaper compared to French-made goods.
  B) French citizens are more likely to buy U.S.-made goods.
  C) U.S. citizens are less likely to buy French-made goods.
  D) All of the above answers are correct.

Question 2

Which of the following is a liability on the balance sheet of the Federal Reserve System?
 
  A) currency
  B) U.S. government securities
  C) mortgage-backed securities
  D) None of the above are correct because they are all assets of the Federal Reserve.

[owenfalvey]

Answer to Question 1

D

Answer to Question 2

A