1. If U.S. interest rates fall relative to Japanese interest rates and Japanese inflation falls relative to U.S. inflation, then the:
A. change in the dollar's value cannot be determined
B. dollar will gain value in terms of yen
C. dollar's value will not change in terms of yen
D. dollar will lose value in terms of yen
2. The Federal funds rate:
A. is always slightly higher than the discount rate
B. is an intermediate target
C. can never be close to zero
D. may sometimes have to be targeted at zero