The dissolving of the _____________ in 1991 resulted in a "peace dividend" for the United States that enabled us to divert tens of billions of dollars a year from military spending to much more productive uses.

The opportunity cost of holding money

A) refers to the amount of paper currency held by the Fed. B) is measured by the alternative interest yield obtainable by holding some other asset. C) is based on the fiduciary monetary system. D) refers to the Fed's role as the lender of last resort.

The increase in quality bias in the consumer price index refers to the idea that price increases in the CPI reflect pure inflation, but ________ quality increases. This causes the CPI to ________ the cost of the market basket

A) not; overstate B) also; understate C) also; overstate D) not; understate