In a system of flexible exchange rates, a reduction in the money supply will cause
a. a rise in the value of the dollar relative to foreign currencies.
b. a fall in the value of the dollar relative to foreign currencies.
c. no change in the value of the dollar relative to foreign currencies.
d. a change in the value of the dollar relative to foreign currencies but the direction of the change is uncertain.
A
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If the Fed carries out an open market operation and sells U.S. government securities, the federal funds rate ________ and the quantity of reserves ________
A) falls; decreases B) rises; increases C) rises; decreases D) rises; does not change E) falls; increases
In the United States since 1970, the poverty rate for blacks has been about:
a. 1?2 percentage points higher than the poverty rate for whites. b. twice the poverty rate for whites. c. three times the poverty rate for whites. d. five times the poverty rate for whites.