Suppose the currency drain ratio is 25 percent and the desired reserve ratio is 20 percent. The money multiplier equals

Improving agriculture's terms of trade involves

a. increasing the amount of goods available to farmers b. increasing the number of markets in which farmers can sell c. increasing the amount of credit available to farmers d. increasing the relative price of agricultural goods compared to manufactured goods e. none of the above

Which of the following is consistent with moving from a shortage to equilibrium in the market for foreign currency exchange?

a. the exchange rate falls so foreign residents want to buy more U.S. goods and services b. the exchange rate falls so foreign residents want to buy fewer U.S. goods and services c. the exchange rate rises so foreign residents want to buy more U.S. goods and services d. the exchange rate rises so foreign residents want to buy fewer U.S. goods and services