When the Fed sells government bonds in the open market, the money supply will increase.

If the dollar falls by 20% against the euro and rises by 10% against the yen, which of the following values for European and Japanese trade with the United States are consistent with a 10% increase in the effective exchange rate of the United States?

a. Europe: 33%; Japan: 66% b. Europe: 66%; Japan: 33% c. Europe: 50%; Japan: 50% d. None of these values is consistent with this increase.

The business cycle component of the log of real per-capita GNP is equal to

A) log of actual real GNP - log of trend GNP. B) log of trend GNP ÷ log of actual real GNP. C) log of trend GNP - log of actual real GNP. D) log of actual real GNP ÷ log of trend GNP.