In the figure above, the shift in the supply curve for U.S. ...

[dollx]

In the figure above, the shift in the supply curve for U.S. dollars from S0 to S2 could occur when
 
  A) the U.S. interest rate falls.
  B) the expected future exchange rate rises.
  C) the U.S. interest rate differential increases.
  D) the current exchange rate falls.

Question 2

Controlling the quantity of money and interest rates to influence aggregate economic activity is called
 
  A) foreign policy.
  B) monetary policy.
  C) fiscal policy.
  D) bank antitrust policy.

[mammy1697]

Answer to Question 1

A

Answer to Question 2

B