If an individual redeems a U.S. savings bond for currency
A) M1 stays the same and M2 decreases.
B) M1 increases and M2 increases.
C) M1 increases and M2 stays the same.
D) M1 stays the same and M2 stays the same.
B
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Which of the following will cause, other things being equal, a movement along the supply curve for LED televisions?
A) an improvement in the technology of producing LED televisions B) an increase in resource costs for producing LED televisions C) a reduction in the price of LED televisions D) an expectation that the price of LED televisions will be lower in the future
The foreign exchange market is
A) a market in which exchange rates are allowed to fluctuate in the open market in response to changes in supply and demand. B) the increase in the exchange value of one nation's currency in terms of an other nation. C) a market in which households, firms, and governments buy and sell national currencies. D) the decrease in the exchange value of one nation's currency in terms of another nation.