If the exchange rate falls from 120 yen per dollar to 110 yen per dollar, the dollar has depreciated

The FOMC is concerned about inflation and has ________ the federal funds rate. Due to substitution effects, other ________ interest rates will ________ almost immediately

A) increased; short-term; increase B) decreased; short-term; decrease C) increased; long-term; increase D) decreased; long-term; decrease E) increased; short-term; decrease

If bonds and stocks are considered to be substitute goods, and the investors expect stock prices to drop in the near future, _____

a. the price of bonds will also decline b. the supply of bonds will increase c. the interest rate on bonds will decline d. the demand for stocks will increase e. the demand for bonds will decline