Making more frequent, but smaller cash withdrawals from banks ________ the inflation losses from holding cash and ________ the shoe leather costs of inflation.

If property rights for air and water exist, then polluters bear the costs of pollution

Indicate whether the statement is true or false

According to the Taylor rule ________

A) expectations are formed in an adaptive fashion B) the central bank should set its federal funds rate target by a formula that puts weight on both output and inflation gaps C) a constant growth rate rule for money should be adopted D) expectations should be formed consistent with the model of rational expectations