In practice, money supply and short-term interest rates are determined by the

Which of the following is true? a. According to the law of supply, the higher the price of the good, the greater the quantity supplied

b. An individual supply curve is a graphical representation that shows the negative relationship between the price and the quantity an individual is willing and able to supply. c. The market supply curve is the vertical summation of the individual firm supply curves. d. An increase in supply is illustrated by an upward shift in the supply curve.

Assume an Australian importer expects to pay 16,000 Australian dollars (AUD) for $8,000 worth of U.S. goods, but on the shipment date 30 days later, the same volume of U.S. goods costs the Australian importer only 10,000 Australian dollars. This means that between the contract date and the payment date, the exchange rate has changed:

a. from $1 = 1.25 AUD to $1 = 2.0 AUD. b. from $1 = 2.0 AUD to $1 = 1.25 AUD. c. from $1 = 0.8 AUD to $1 = 0.5 AUD. d. from $1 = 0.5 AUD to $1 = 0.8 AUD. e. from $1 = 0.5 AUD to $1 = 2.0 AUD.