Refer to the Article Summary. If the Federal Reserve's announcements about upcoming monetary policy decisions are not seen as credible, as Senator Pat Toomey alludes to regarding the Fed's changing projections as to when they would increase interest
rates, which of the following would you expect to see?
A) Inflation expectations will accurately reflect actual inflation.
B) Expansionary monetary policy will result in lower rates of inflation.
C) The Federal Reserve will have more control over the inflation rate.
D) Firms and workers will be unable to accurately forecast changes in the rate of inflation.
D
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Resources that are ________ tend to be carefully managed to provide profits, which ensures that they will last a long time
A) publicly held B) privately owned C) scarce D) abundant
Leisure Land produces only sun screen and camel rides. The table shows the marginal benefit and marginal cost schedules for sun screen and camel rides. The allocatively efficient number of camel rides is ________
A) 1 ride per day because the marginal benefit exceeds the marginal cost by as much as possible B) 2 rides per day C) 4 rides per day D) 6 rides per day because that is the maximum number of rides