Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dollar in international exchange markets to ________. I.e., the dollar ________ in value against the yen

Liquidity is:

A. the magnitude of change in the money supply as controlled by the Fed. B. a measure of how easily a particular asset can be converted quickly to cash without much loss of value. C. the speed with which physical dollars change hands in the economy. D. the speed with which dollars are spent in the economy.

An open market purchase by the Fed:

A. increases investment and increases output. B. increases investment and decreases output. C. decreases investment and increases output. D. decreases investment and decreases output.