If the interest rate rises in the United States relative to other nations, then in the foreign exchange market the demand for dollars ________ and the supply of dollars ________

The demand for reserves is __________ related to the federal funds rate because banks __________ their excess reserves as the federal funds rate falls

A) inversely; increase B) inversely; decrease C) positively; increase D) positively; decrease

Using a production possibilities curve, a technological advance that increases the amount of output for the same amount of inputs would be illustrated as

a. an inward shift of the curve. b. a movement from one point to another point along the curve. c. an outward shift of the curve. d. a movement from a point on the curve to a point inside the curve.