As you move down the production possibility frontier, the absolute value of the marginal rate of transformation

As the world economy becomes more integrated through globalization

A) the Fed will find it easier to conduct monetary policy. B) the Fed will have a more difficult time reaching its money supply growth rate targets. C) the Fed will rely less on open market operations and more on changing the required reserve ratio when conducting monetary policy. D) U.S. interest rates will determine world interest rates.

The error term in a multiperiod regression

A) is serially correlated. B) causes OLS to be inconsistent. C) is serially correlated, but less so the longer the forecast horizon. D) is serially uncorrelated.