8) Following the example of the shirts, if its price is lower in NYC than in London, we would expect from the arbitrage process:

a) a weakening of the dollar

b) a strengthening of the pound

c) no impact on the pound

d) an appreciation of the dollar

10) The fiscal viability of the U.S. economy can be severely compromised by:

a) Defense spending

b) Unrestrained transfers

c) Absence of entitlement reform

d) b) and c)

e) a) and c)

20) Which variable contributes to reducing inflation:

a) increases in GDP

b) reduction of interest rates

c) the purchase of bonds by the Fed

d) deficits of the government financed by the Fed