Fill in the blank: Producers will compare ________ benefits to ________ costs when considering how much output to produce

An increase in the discount rate ________ bank reserves and ________ the money supply if banks with outstanding loans are encouraged to pay them back more quickly

A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases

Positive analysis of economic policy

A) examines the economic consequences of policies but does not address the question of whether those consequences are desirable. B) examines the economic consequences of policies and addresses the question of whether those consequences are desirable. C) generates less agreement among economists than normative analysis. D) is rare in questions of economic policy.