To temporarily offset a depreciation in the dollar's exchange value, the Federal Reserve could the U. S. money supply which would promote a (an) in U. S. interest rates and a (an) in investment flows to the United States. a. Increase, decrease, decrease b. Increase, increase, increase c. Decrease, decrease, increase d. Decrease, increase, increase

D

Explanation:

depreciation occurs when the value of a currency falls relative to the value of another currency,

for example, if the exchange rate is $1 = 190 naira and after a period, exchange rate is $1 = 380.50 naira. it can be said that the naira has depreciated against the dollar

To mitigate against deprecation, contractionary policies should be carried out

contractionary policies reduces the money supply in the economy. When there is a reduction in money supply, interest rate increases and this encourages the flow of funds as it is more profitable to do business in that country

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.