The American national debt is an obligation to pay U.S.$.

Which of the following statements is not compatible with the opportunity cost theory?

A) Demand plays a role in the determination of costs. B) Labor costs depend upon the demand for labor. C) Relative prices reflect the relative amount of human labor required to produce goods. D) Supply as well as demand depends upon subjective preferences.

An increase in money growth, holding all other factors constant, will cause

A) a reduction in seignorage. B) an increase in seignorage. C) no change in seignorage. D) an ambiguous effect on seignorage.