4.How can policymakers influence a nation's saving rate? 5.Describe the possible effects of falling prices on equilibrium income. 6.Economist Alan Blinder,whom Bill Clinton appointed to be Vice Chairman of the Federal Reserve,once wrote the following:The costs that attend the low and moderate inflation rates experienced in the United States and in other industrial countries appear to be quite modest-more like a bad cold than a cancer on society.As rational individuals,we do not volunteer for a lobotomy to cure a head cold.Yet,as a collectivity,we routinely prescribe the economic equivalent of y(high sa cure for inflationary cold.Wha You think Blinder meant by this?What are the policy implications of the viewpoint Blinder is advocating?Do you agree?Why or why not? 4.How can policymakers influence a nation’s saving rate? 5.Describe the possible effects of falling prices on equilibrium income. 6.Economist Alan Blinder,whom Bill Clinton appointed to be Vice Chairman of the Federal Reserve,once wrote the following: The costs that attend the low and moderate inflation rates experienced in the United States and in other industrial countries appear to be quite modest—more like a bad cold than a cancer on society.As rational individuals,we do not volunteer for a lobotomy to cure a head cold. Yet, as a collectivity, we routinely prescribe the economic equivalent of lobotomy(high unemployment)as a cure for the inflationary cold. What do you think Blinder meant by this? What are the policy implications of the viewpoint Blinder is advocating?Do you agree? Why or why not?