Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).According to this Application, more years of work would be required to pay off a student loan if all prices (including your salary):

If the Fed wants to depreciate the U.S. dollar against the British pound, it will ________

A) sell foreign exchange B) decrease the money supply C) sell British pounds D) sell U.S. dollars

Spending VCU4 on real-world goods and services causes the nation's:

a. Demand for real goods and services to remain the same and monetary base to rise. b. Demand for real goods and services to rise and M2 money supply to fall. c. Demand for real goods and services to remain the same and M2 money multiplier to remain the same. d. Demand for real goods and services to rise and monetary base to remain the same.