An increase in the money supply will reduce interest rates and increase the price of bonds.

Which of the following factors is likely to lead to an increase in the quantity demanded of pens?

A) A fall in the price of paper B) A fall in the incomes of all consumers C) A rise in the incomes of all consumers D) A fall in the price of pens

If the Fed increases the interest rate in the U.S.:

A) the demand curve for dollars will shift to the left. B) the demand curve for dollars will shift to the right. C) the supply curve of dollars will shift to the right. D) the real exchange rate of the U.S. will depreciate.