If the inflation rate turns out to be greater than was is expected to be, the clear winners are

Everything else held constant, if a central bank makes a sterilized purchase of foreign assets, then the domestic currency will

A) appreciate. B) depreciate. C) either appreciate, depreciate, or remain constant. D) not be affected.

Which of the following options would be most likely to cause an increase in short-term real interest rates?

a. The Federal Reserve cuts the discount rate. b. The Federal Reserve lowers the reserve requirement. c. The Federal Reserve sells bonds in the open market. d. The federal budget is shifted toward a surplus.