1: Why is it so hard for the Fed to remedy an asset price bubble?

A. It may be hard to tell when there's an asset price bubble

B. Using monetary policy might cause more unemployment

C. It may be hard to predict how severe the impact of an asset bubble will be

D. All of the above

2: Suppose inflation was significantly higher than expected. This means that:

A. Nominal interest rates are too high

B. Wealth was transferred from lenders to borrowers

C. The real rate of return was greater than the equilibrium rate

D. Money is worth more than expected