The Fed began paying interest on reserves in October 2008 . Holding all else constant, what effect would this have on the money supply?

In 1996, an advisory committee of economists that studied the CPI found

a. no bias in the CPI b. that in a typical year the CPI overstates the inflation rate by at least 1.1 percent per year c. that the CPI consistently overestimates the inflation rate by less than 1 percent per year d. that the CPI typically underestimates the inflation rate e. that the CPI is somewhat erratic; it occasionally underestimates and occasionally overestimates the inflation rate

Which of the following factors explains why managers of government agencies have little incentive to achieve operational efficiency?

a. Public-sector managers have no fear of bankruptcy when operational efficiency is not achieved. b. Public-sector managers face fierce competition. c. It is relatively easy for voters to detect operational inefficiency in the public sector and do something to correct it. d. All of the above explain why government agencies have little incentive to be efficient.