Markets can be least well-defined by

Suppose the current exchange rate between the Chinese yuan and the United States dollar is 7 yuan per dollar. If the Fed sought to drive up the exchange rate to 8 yuan per dollar then it would

A) buy dollars. B) sell dollars. C) buy yuan. D) sell dollars and buy yuan.

If a new and better good replaced an older and less expensive good, then the price level measured by the CPI ________

A) is lower than the actual price level B) is higher than the actual price level C) might be either higher or lower than the actual price D) is the same as the actual price level because it measures the prices of the actual goods