If the Fed raises the federal funds rate, which of the following ...

[saraeharris]

If the Fed raises the federal funds rate, which of the following occurs?
 
  A) Consumption expenditure decreases.
  B) Investment increases.
  C) The price of the dollar on the foreign exchange market increases.
  D) Net exports increase.
  E) Aggregate demand increases.

Question 2

Refer to the figure above. Which of the following explains the impact on the domestic buyers and sellers when the country opens to free trade?
 
  A) Both the sellers and the buyers are made worse off.
  B) Both the sellers and the buyers gain.
  C) The domestic firms lose but the buyers gain.
  D) The domestic firms gain but the buyers lose.

[parker125]

Answer to Question 1

C

Answer to Question 2

D

[saraeharris]

Correct answers!

[parker125]

Great! Please up vote