One surprising insight from viewing policy as a game is that ...

[Lobcity]

One surprising insight from viewing policy as a game is that
 
  A) central bankers should project an image of being conservative on economic policy matters, regardless of their personal views.
  B) it is more difficult to control inflation when the central bank is highly independent.
  C) uncertainty over the impact of policy makes little difference in designing an optimal policy.
  D) money growth has little or no impact on inflation in the long run.
  E) decreasing money growth may substantially increase the rate of inflation in the long run.

Question 2

Suppose there is a reduction in the saving rate. This decrease in the saving rate will cause a reduction in which of the following once the economy reaches its new steady state equilibrium?
 
  A) growth rate of output
  B) growth rate of capital
  C) growth rate of capital per worker
  D) all of the above
  E) none of the above

[Alyson.hiatt@yahoo.com]

Answer to Question 1

A

Answer to Question 2

E

[Lobcity]

Thank you

[Alyson.hiatt@yahoo.com]

Happy to help you