If the dollar-pound exchange rate is $1.00 per pound, then a shirt priced at 25 pounds will cost an American

When the Fed uses contractionary policy

A) it does not change the price level. B) the price level rises less than it would if the Fed did not pursue policy. C) it causes inflation. D) the price level rises higher than it would if the Fed did not pursue policy.

Suppose that an early frost damages the Florida orange crop. As a result, the price of California oranges increases. Ceteris paribus, which one of the following statements best explains this situation?

A) The supply of Florida oranges decreased, causing the supply of California oranges to increase, which resulted in a higher price. B) The supply of Florida oranges decreased, causing the supply of California oranges to decrease, which resulted in a higher price. C) The supply of Florida oranges decreased, causing their price to increase, and thus causing the demand for California oranges to increase. D) The demand for Florida oranges fell because of the freeze, and this led to a higher demand for California oranges.