Consider two lottery winners, Tino who is 65 years old and Sasha who is 32 years old. Which of these two would be expected to have the larger income effect, all else equal?

A higher U.S. exchange rate means that

A) foreign products are now more expensive to U.S. citizens. B) foreign products are now cheaper to U.S. citizens. C) U.S. products are now more expensive to U.S. citizens. D) U.S. products are now cheaper to foreign countries.

A speculator who believes strongly that interest rates will fall would be likely to

A) buy futures contracts on Treasury bills. B) sell futures contracts on Treasury bills. C) sell Treasury bonds in the spot market. D) decrease now the amount of money which he lends.