In the 1980s, several ________________ countries experienced inflation rates of thousands of percent per year

Suppose we were analyzing the Turkish lira per euro foreign exchange market. If the Euro-Area's price level falls relative to Turkey and nothing else changes, then the:

a. The supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market rises, causing an appreciation of the euro. b. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing an appreciation of the euro. c. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market rises, causing an uncertain change in the value of the euro. d. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing a depreciation of the euro. e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.

Other factors being constant, what happens when the federal government finances a growing budget deficit by increasing the amount it borrows from the private sector?

A. There will be an increase in net exports. B. There will be a decrease in the interest rate. C. There will be an increase in the interest rate. D. The crowding out effect will be cancelled out.