What matters most to importers and exporters is the nominal exchange rate

Which action could the Fed use to decrease the money supply?

A) a tax increase B) a decrease in the discount rate C) an increase in the required reserve ratio D) an open market purchase

According to the random walk theory

A) today's stock price will be related to yesterday's stock price. B) successive prices of a stock are independent of each other. C) stock prices can easily be predicted for as much as 52 weeks into the future. D) stock prices rise and fall in predictable cycles that correspond with the overall business cycle.