If the Fed tries to prevent the U.S. dollar exchange rate from ...

[james0929]

If the Fed tries to prevent the U.S. dollar exchange rate from rising, the Fed ________ U.S. dollars, ________ foreign currency, and U.S. official reserves ________.
 
  A) sells; buys; decrease
  B) sells; sells; increase
  C) buys; buys; increase
  D) sells, buys; increase
  E) buys; sells; increase

Question 2

In the above figure, Jill's opportunity cost of producing 1 gallon of bottled water is ________ of soda.
 
  A) 4 gallons
  B) 1/4 of a gallon
  C) 1 gallon
  D) 1/2 of a gallon
  E) 2 gallons

[bpool94]

Answer to Question 1

D

Answer to Question 2

C