If a firm's average cost is currently $100, and the marginal cost is $95, then the average cost is currently falling

If everyone knew in advance the exact rate of inflation:

A. the economy will have reached its long run equilibrium. B. borrowers would be discouraged when inflation will be low and lenders when inflation will be high. C. the risk of the breakdown of financial intermediation would increase. D. the exact rate of inflation wouldn't matter so much because people could prepare.

John Maynard Keynes and his followers argued that

a. the classical model does a good job of explaining the economy's operation in both the short run and long run b. the short run is unimportant so economists should focus their attention on the long run c. the economy should be allowed to function with minimal government interference d. the economy operates the same way in both the short run and long run e. while the classical model might explain economic performance in the long run, the long run could take a long time to reach