Mechanism design can be used to provide employers and employees with the right incentives in labor markets.

When an economy experiences a zero rate of inflation, which of the following statements is definitely true?

A. Real incomes improve. B. There is no redistribution of income and wealth because of inflation. C. Relative prices do not change. D. Real incomes are affected by money illusion. E. The level of uncertainty increases in the economy

In a system of 100-percent-reserve banking,

a. banks do not make loans. b. currency is the only form of money. c. deposits are banks' only assets. d. All of the above are correct.