Since it spent over $3.6 trillion in 2010, opportunity cost was not an issue for the U.S. government

When the Fed ________ the federal funds rate, other short-term interest rates and the exchange rate also ________. The quantity of money and the supply of loanable funds ________

A) lowers; rise; increase B) lowers; fall; decrease C) lowers; fall; increase D) raises; rise; increase E) raises; fall; increase

The purpose of creating the European exchange rate mechanism (ERM) was to

A) base trade and investment on comparative advantage. B) prevent currencies from appreciating. C) create barriers to trade. D) let exchange rates float more freely.