If the nominal exchange rate were to be expressed as the number of units of domestic currency per unit of foreign currency, and that rate decreases, then the domestic currency has:

Instrument independence is the ability of ________ to set monetary policy ________

A) the central bank; goals B) Congress; goals C) Congress; instruments D) the central bank; instruments

An expansionary monetary policy may cause asset prices to rise, thereby reducing the likelihood of financial distress and causing consumer durable and housing expenditures to rise. This monetary transmission mechanism is referred to as

A) the household liquidity effect. B) the wealth effect. C) Tobin's q theory. D) the cash flow effect.