Costs associated with economic growth include all of the following EXCEPT

Refer to the Article Summary. If the Federal Reserve's announcements about upcoming monetary policy decisions are not seen as credible, as Senator Pat Toomey alludes to regarding the Fed's changing projections as to when they would increase interest

rates, which of the following would you expect to see? A) Inflation expectations will accurately reflect actual inflation. B) Expansionary monetary policy will result in lower rates of inflation. C) The Federal Reserve will have more control over the inflation rate. D) Firms and workers will be unable to accurately forecast changes in the rate of inflation.

One benefit to private sector production of a collective consumption good is _____

a. it overcomes the free riding problem b. private producers can often bundle the good with something else people value c. profits from private companies can be taxed d. provides information valuable in allocating future resources