By refusing to be time inconsistent, a central bank is ________ its reputation and ________ "policy credibility."

Marginal benefit is the benefit ________ one more unit of the good and ________ of the good increases

A) of producing; increases as production B) of producing; decreases as production C) from consuming; increases as consumption D) from consuming; decreases as consumption

If companies decrease investment spending because of lower expected returns on projects, forecasters should anticipate (everything else the same) that

A) GDP will rise. B) the money supply will fall. C) interest rates will fall. D) saving will increase.