When the money market is drawn with the value of money on the vertical axis, if the Federal Reserve sells bonds, then the money supply curve

Suppose the Canadian central bank wants to keep the exchange rate of the Canadian dollar with the U.S. dollar constant over time. An increase in the demand for Canadian goods by American residents will lead the Canadian central bank to

A) sell American goods in exchange for Canadian dollars. B) buy more Canadian goods with Canadian dollars. C) increase the demand for Canadian dollars in the foreign exchange market. D) increase the supply of Canadian dollars in the foreign exchange market.

When economists speak of scarcity, they are referring to the

A) condition in which society is not employing all its resources in an efficient way. B) condition in which people's wants outstrip the limited resources available to satisfy those wants. C) economic condition that exists in only very poor countries of the world. D) condition in which society produces too many frivolous goods and not enough socially desirable goods.