1.Consider the supply-demand framework for the British pound relative to the U.S. dollar shown in the nearby?

1.Consider the supply-demand framework for the British pound relative to the U.S. dollar shown in the nearby chart. The exchange rate is currently $1.80 =
拢1.00. Which of the following is correct?
A. To "fix" the exchange rate at $1.80 = 拢1.00, the Federal Reserve could use contractionary monetary policy to shift the demand curve to the left.
B. To "fix" the exchange rate at $1.80 = 拢1.00, the U.S. government could use contractionary fiscal policy to shift the demand curve to the left.
C. The British Government could use fiscal or monetary policy to shift the supply curve to the right to fix the exchange rate to $1.80 = 拢1.00
D. All of the above.

2. Factor income A
A. Consists largely of interest, dividends, and other income on foreign investments.
B. Is a theoretical construct of the factors of production, land, labor, capital,and entrepreneurial ability.
C. Is generally a very minor part of national income accounting, smaller than the statistical discrepancy.
D. None of the above

A. But it is probably the wrong thing to do and it won't fix it.
I do not know what "factor income A" is. You probably mean B.
There is something wrong with this test.