If aggregate demand equals aggregate supply, macroeconomic equilibrium exists

When currency outstanding decreases,

A) gold certificates rise. B) the money supply increases. C) Fed assets decline. D) bank deposits at the Fed increase.

Interest rate parity can be summarized by which of the following equilibrium conditions?

a. The foreign interest rate must equal the domestic interest rate plus the expected inflation. b. The foreign interest rate must equal the domestic interest rate. c. The foreign interest rate must equal the expected change in the exchange rate. d. The domestic interest rate must equal the foreign interest rate plus the expected change in exchange rate. e. The domestic interest rate must equal the foreign interest rate minus any expected inflation.