Bagels and cream cheese are complementary goods. Suppose that the price for flour, which is used to produce bagels, increases. The equilibrium price of cream cheese ________, and the equilibrium quantity of cream cheese ________

If the United States has a current account deficit with England of $1 million, and the Bank of England sells $1 million worth of pounds in the foreign exchange market, then England ________ $1 million of international reserves and its monetary base

________ by $1 million. A) gains; rises B) gains; falls C) loses; rises D) loses; falls

The Federal Reserves responses to the financial crisis that began in 2007 include:

a. cautious cuts in the Federal funds rate. b. large expansions of credit. c. underwriting lending in many markets. d. All of the above are correct. e. Only b and c are correct.