The ________ relation indicates that the interest differential between investments in two currencies will equal the forward premium or discount between the currencies

Suppose favorable weather resulted in a bumper crop of oranges in Florida. In the market for oranges

A) the supply curve shifted to the right resulting in a decrease in the equilibrium price. B) the supply curve shifted to the right resulting in an increase in the equilibrium price. C) the demand curve shifted to the left resulting in a decrease in the equilibrium price. D) the demand curve shifted to the right resulting in an increase in the equilibrium price.

Answer the following statements true (T) or false (F)

1. Under the gold standard, a nation experiencing chronic trade deficits had to increase its money supply while reducing its holdings of gold. 2. After World War II, most nations adopted some type of fixed or controlled exchange rate system. 3. Under a fixed or controlled exchange rate system, if the United States wanted to increase the value of the dollar, it could buy foreign currencies with dollars. 4. Since World War II, the importance of gold in international exchange has increased. 5. The Bretton Woods system included the idea of fixed exchange rates.