In the United States there are some methods to save which reduce taxes on savings. These include

Government action will often result in the counterproductive use of resources because

a. there is often a conflict between winning political elections and adoption of only productive programs. b. many politicians are not interested in how their legislative votes will influence their chances of winning future elections. c. politicians are often unwilling to listen to interest groups that have specialized knowledge. d. voter participation is low; if more people voted, the political process would be more efficient.

When the money supply declines by 10%, in the short run (before the price level adjusts to restore general equilibrium), output ________ and the price level ________.

A. falls; is unchanged B. is unchanged; falls C. is unchanged; is unchanged D. falls; falls