Most of the world's currencies are backed by some type of commodity

Suppose China decides to sell a vast majority of their large holdings of U.S. Treasury bonds. If you are thinking of refinancing your house, how would China's action affect your decision to refinance?

A) You would want to wait to refinance as interest rates should rise. B) China's actions should not affect your decision to refinance in any way. C) You would want to refinance as soon as possible as interest rates should rise. D) You would want to wait to refinance as interest rates should fall.

The widespread, but not universal, consensus among economists would be to respond to

A) an adverse supply shock with an accommodating policy. B) an adverse supply shock with an extinguishing policy. C) an adverse demand shock with a policy to offset the shock. D) all of the above.