An individual who works for 49 quarters in a covered job is eligible for Social Security benefits

Which of the following statements is true?

A) Optimization is an easy process, and all economic agents are perfect optimizers. B) Optimization implies choosing the best option from a set of alternatives. C) It is easier for a person to optimize when he has less information. D) People always successfully optimize given the limited information they have.

If the consensus in securities markets is that a previous increase in the money supply will be inflationary, the likely result will be

A) higher real interest rates. B) higher nominal interest rates. C) lower real interest rates. D) lower nominal interest rates.