Frieda is at her local florist to buy a dozen roses. She is willing to pay 75 for the roses, and buys them for 75. Frieda's consumer surplus from the purchase is
A) 150. B) 75. C) 37.50. D) 0.
Question 2
Refer to the Article Summary. If the Federal Reserve's announcements about upcoming monetary policy decisions are not seen as credible, as Senator Pat Toomey alludes to regarding the Fed's changing projections as to when they would increase interest
rates, which of the following would you expect to see?
A) Inflation expectations will accurately reflect actual inflation.
B) Expansionary monetary policy will result in lower rates of inflation.
C) The Federal Reserve will have more control over the inflation rate.
D) Firms and workers will be unable to accurately forecast changes in the rate of inflation.
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