If an individual's budget constraint shifts, the individual's changes in consumption can be broken down into _____ and _____ effects

Suppose there is a simultaneous Fed sale of bonds and increase in consumer confidence. We know with certainty that these two simultaneous events will cause

A) an increase in the interest rate (i). B) a reduction in i. C) an increase in output (Y). D) a reduction in Y.

Suppose a country that has been pegging its currency is faced with a situation where financial market participants now expect some future devaluation. In such a situation, we would generally expect which of the following to occur?

A) a reduction in the domestic interest rate B) an announcement by the central bank that a large devaluation will occur in the near future C) reduction in demand for the country's currency D) all of the above E) none of the above