When the price of a good rises, consumers buy a smaller quantity because of the ________ effect and the ________ effect

If the Fed has the discretion to choose its policy and announces a low inflation policy, then

a. the public is likely to discount this claim because the Fed has an incentive to change their policy in the future. b. the public is likely to believe this claim because the Fed has no incentive to change their policy in the future. c. the Fed will always cheat and increase inflation in the future. d. the Fed will have to keep inflation lower in the future or they will be voted out of office. e. none of the above.

The demand curve for capital is ____ and its supply curve is ____

a. downward sloping; downward sloping b. upward sloping; upward sloping c. downward sloping; upward sloping d. upward sloping; downward sloping