Refer to the figure above. What is the equilibrium quantity of credit when the credit demand curve is CD2 and the credit supply curve is CS1?

Under a floating rate system, exchange rates are determined by supply and demand in the foreign exchange market without government intervention

a. True b. False

If the U.S. government decided to pay off the national debt by creating money, what would be the most likely effect?

a. a substantial reduction in real GDP b. a deflationary collapse c. rapid inflation d. an increase in the trade surplus