What is the optimal monetary policy in an economy with growing population n>1?

a. z=1

b. z<1

c. z=n

d. z>1

The money creation (seigniorage) to finance government purchases

a. is inferior to a non distortionary tax in terms of welfare

b. has the same effects in welfare as a non distortionary tax

c. has better welfare effects compared to a non distortionary tax

d. is the optimal policy in terms of welfare

Mutual funds offer investors

a. a lower return for less risk than what the investor could earn on his own.

b. a lower return for more risk than what the investor could earn on his own.

c. a way for individuals to eliminate the idiosyncratic risk associated with any single investment.

d. a greater return for greater risk than what an investor can earn on his own.