Price floors are primarily targeted to help

If the Fed sells U.S. government securities to drain reserves from banks, which of the following is most likely to occur? a. The demand for money will increase and the interest rate will rise

b. The money supply will increase and the interest rate will fall. c. The interest rate will rise and the quantity of money demanded will fall. d. The money supply will decrease and the interest rate will fall. e. The interest rate will fall and the quantity of money demanded will increase.

Under a fixed-rate unified currency regime, each country belonging to the system

a. may pursue an independent monetary policy. b. gives up its monetary policy independence to one central bank with the power to expand and contract the money supply. c. is committed to conducting highly expansionary monetary policy in order to maintain the convertibility of its currency. d. must fix its domestic interest rates in order to maintain the convertibility of its currency.