When the Fed ________ securities in an open market operation, banks' reserves ________, and therefore lending ________

Suppose that the nominal exchange rate between the U.S. dollar and the Canadian dollar is 0.75 U.S. dollars per Canadian dollar. If Canada's rate of inflation is 0 percent and the U.S. rate is 10 percent, then the real exchange rate for the U.S. dollar will

A) appreciate by about 9 percent. B) appreciate by 10 percent. C) depreciate by about 9 percent. D) depreciate by 10 percent.

Compared to a cartel, firms in a Cournot Oligopoly

A) make more joint profit. B) sell less output. C) make less joint profit. D) act independently.