In the long run, if the prices of goods and services are higher than before the aggregate quantity:

Other things remaining the same, the

A) larger the value of U.S. imports, the smaller is the quantity of foreign currency demanded. B) larger the value of U.S. imports, the greater is the quantity of U.S. dollars supplied to the foreign exchange market. C) lower the exchange rate, the cheaper are foreign-produced goods and services. D) higher the exchange rate, the greater is the expected profit from selling dollars.

If a bank sells a $1,000 security to the Fed and the required reserve ratio is 20 percent: a. the bank has $1,000 in additional excess reserves, of which it can lend $800. b. the bank has $1,000 in additional excess reserves, all of which it can lend out. c. the bank has lost an asset and must reduce its loans

d. the bank has lost a liability. e. there is no change in excess reserves, since net assets do not change.