If the Fed wishes to slow economic activity, it might actively pursue:

In which of the following categories would an agreement to buy or sell a certain quantity of a specified currency at a fixed price at a date 30, 60, 90, 120, or 360 days in the future be included?

a. an option b. a futures contract c. a forward contract d. a swap

In response to an unanticipated easing of monetary policy, output ________ at first, then ________ after about four months

A) rises; returns most of the way to its original value B) falls; returns most of the way to its original value C) remains roughly unchanged; rises significantly D) remains roughly unchanged; falls significantly