When the Fed ________ the federal funds rate, the opportunity cost of firms' investment ________ and so the quantity of investment ________

When policy makers decide to revalue the currency, such an action generally represents

A) an increase in the pegged value of the domestic currency. B) a decision to let the currency float. C) a reduction in the foreign price level. D) an increase in the domestic price level. E) none of the above

If you transfer all of your currency to your checking account, then initially, M1 will ________ and M2 will ________

A) increase; not change B) not change; increase C) not change; not change D) decrease; increase