As the U.S. dollar appreciates against foreign currencies, the U.S. ____________ curve shifts _____________ resulting in a(n) _________________ in the U.S. price level and a(n) _________________ in Real GDP in the United States

When the economy is at full employment and inflation is present, the government could create a surplus budget by cutting its own spending and raising taxes. The Fed would be expected to:

a. reduce the required reserve ratio, increase the discount rate, and buy securities on the open market. b. reduce the required reserve ratio, reduce the discount rate, and sell securities on the open market. c. reduce the required reserve ratio, reduce the discount rate, and buy securities on the open market. d. increase the required reserve ratio, reduce the discount rate, and sell securities on the open market. e. increase the required reserve ratio, increase the discount rate, and sell securities on the open market.

If the government increases the income tax rate:

A. disposable income decreases. B. disposable income increases. C. disposable income remains unaffected. D. total income increases.