Expansionary monetary policy is designed to stimulate the economy by increasing the money supply, but not create much inflationary pressure

According to the intertemporal substitution effect, a fall in the price level will

A) decrease the real value of wealth, which increases the quantity of real GDP demanded. B) cause the interest rate to fall so that investment increases and the quantity of real GDP demanded increases. C) increase net exports, which causes the quantity of real GDP demanded to increase. D) increase the real value of wealth, which raises the interest rate so that the quantity of real GDP demanded decreases.

Refer to Table 7-6. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many belts will Morocco consume?

A) 60 B) 70 C) 90 D) 120