Which of the following macroeconomic variables is procyclical and lags the business cycle?

In an oligopoly price-fixing game, each player tries to

A) minimize the market shares of its opponents. B) maximize its own market share. C) minimize the profits of its opponents. D) maximize its own profit.

You have just noticed that the dollar appreciated and you suspect that U.S. policymakers were behind this change. Which would you choose as the most likely cause of this appreciation in the real exchange rate?

A) An increase in the money supply B) A decrease in the money supply C) A temporary increase in government purchases D) A temporary decrease in taxes