Under a fixed exchange rate regime, if the domestic currency is initially ________, that is, ________ par, the central bank must intervene to purchase the domestic currency by selling foreign assets

An increase in interest rates will generally lead to a(n) ____ in present investment and a(n) ____ in future income and production

a. decrease, decrease b. decrease, increase c. increase, decrease d. increase, increase

The statement "other things being equal" in the law of demand means all of the following remain constant EXCEPT

A) consumer income. B) the price of the good concerned in the law of demand. C) the prices of substitutes. D) tastes and preferences.