Part of the story of the interest rate effect is that a lower price level causes __________ in the demand for credit, which then causes the interest rate to __________

An increase in the price level ________ real wealth, which causes consumption to ________

A) lowers; decrease B) raises; decrease C) lowers; increase D) raises; increase

Assume the United States has only one trading partner. The U.S. demand curve for foreign currency is drawn while holding constant all of the following factors except one. Which is the exception?

a. incomes of U.S. consumers b. the exchange rate c. the expected rate of inflation in the U.S. d. the foreign prices of foreign goods e. U.S. interest rates relative to foreign interest rates