As the supply of virtual currency unit 4 (VCU4) rises, nations in which it is used can gradually lose control over their:

The FOMC is concerned about inflation and has ________ the federal funds rate. Due to substitution effects, other ________ interest rates will ________ almost immediately

A) increased; short-term; increase B) decreased; short-term; decrease C) increased; long-term; increase D) decreased; long-term; decrease E) increased; short-term; decrease

If the domestic prices for traded goods rises 5% in Japan and rises 7% the US over the same period, what would happened to the Yen/US dollar exchange rate? HINT: S1/S0 = (1+?h) / (1+ ?f) where S0 is the direct quote of the yen at time 0, the current period

a. The direct quote of the yen ($/¥) rises, and the value of the dollar falls. b. The direct quote of the yen ($/¥) falls, and the value of the dollar rises. c. The direct quote of the yen would remain the same. d. Purchasing power parity does not apply to inflation rates. e. Both a and d.