Normative economic analysis answers what question?

When the Fed ________ the federal funds rate, other short-term interest rates ________ and the exchange rate ________

A) lowers; rise; rises B) raises; fall; rises C) raises; rise; rises D) raises; rise; falls E) lowers; rise; falls

If the exchange rate changes from 20 cents per franc to 18 cents per franc, the U.S. dollar has

a. appreciated, since its value has increased b. appreciated, since its value has declined c. depreciated, making French goods more expensive in U.S. dollars d. depreciated, since its value has declined e. depreciated, since its value has increased