During the twentieth century, the real income of the average American grew by a factor of more than seven

A country with an undervalued currency

A. will have a balance of payments deficit. B. will accumulate reserves of foreign currencies. C. will suffer losses of foreign reserves. D. must intervene in the foreign-exchange market to buy its own currency.

. Until 2008, the Fed could make the market federal funds rate equal the target rate by:

A. setting the discount rate below the federal funds rate. B. entering the federal funds market as a borrower or a lender. C. paying higher interest on reserves. D. mandating that all loans be transacted at the target rate.