In the above figure, the efficient amount of output is ________ units

If the Fed sells government securities

A) commercial bank reserves will decrease. B) the government's debt will decrease. C) commercial bank reserves will increase. D) there will be no effect on the quantity of money.

Suppose that one-year treasury bills yield 8 percent in the United States and 6 percent in Japan. Investors will prefer to purchase the U.S. securities, unless they expect the dollar to __________ against the yen over the next year

A) depreciate by less than 2 percent B) depreciate by more than 2 percent C) appreciate by less than 2 percent D) appreciate by more than 2 percent