Which of the following would most likely tell an economist if a policy is efficient?

If people expect the Fed to adopt a(n) ________ for several years, the long-run real interest rate will remain ________

A) contractionary fiscal policy; high B) expansionary fiscal policy; low C) expansionary monetary policy; low D) contractionary monetary policy; low

Ronald Coase argued that firms exist due to the presence of

A) transfer costs. B) unions. C) transactions costs. D) easy market transactions.