In managing the monetary base, the Fed most often uses

Everything else held constant, an increase in expected inflation, lowers the expected return on ________ compared to ________ assets

A) bonds; financial B) bonds; real C) real estate; financial D) real estate; real

In contrast to a monopoly which misallocates resources by restricting output and producing too little, government bureaus misallocate resources by _____

a. producing too little b. producing too much c. producing the right amount but charging nothing for the output d. producing zero