1. The yield offered on government bonds in different countries in the eurozone (are or are not) always the same, due to the presence of (exchange rate risk or credit risk).

2. Suppose that the U.S. Federal Reserve wishes to influence the value of the dollar to stimulate the economy.

If the Fed uses direct intervention to achieve this goal, it will seek to (Weaken or strengthen) the dollar. In doing so, this direct intervention may very well (Increase or Decrease) inflation since domestic producers will be (Less or More) likely to raise their prices.