An example of a variable factor of production in the short run is

When the Fed sells short-term bonds and buys long-term bonds, it is engaging in

A) changing the discount rate. B) forward guidance. C) backward guidance. D) a maturity extension program.

Suppose that the latest Consumer Price Index (CPI) release shows a higher inflation rate in the U.S. than was expected. Everything else held constant, the release of the CPI report would immediately cause the demand for U.S

assets to ________ and the U.S. dollar would ________. A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate