Refer to Table 11.1. At the equilibrium level of output, y*, what is the trade balance?

If the Fed tries to prevent the U.S. dollar exchange rate from rising, the Fed ________ U.S. dollars, ________ foreign currency, and U.S. official reserves ________

A) sells; buys; decrease B) sells; sells; increase C) buys; buys; increase D) sells, buys; increase E) buys; sells; increase

Although the Federal Reserve had traditionally made discount loans only to commercial banks, in response to the financial crisis in 2008 the Fed made ________ eligible for discount loans as well

A) savings banks B) primary dealers C) the Treasury Department D) mortgage brokers