Using the Taylor rule, if the current inflation rate equals the target inflation rate and real GDP is greater than potential GDP, then the federal funds target rate ________ the sum of the current inflation rate plus the real equilibrium federal
funds rate.
A) will be the same as B) will be less than
C) will be greater than D) may be greater than or less than
C
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A firm operating with diminishing total returns cannot be profit maximizing
What will be an ideal response?
Which is NOT an example of signaling high quality in a social setting
a. wearing a business suit on a job interview b. scrimping on the tip for the waiter after a dinner date c. offering an expensive engagement ring to your bride d. Visiting the beauty salon before a big date
The proper economic method of selecting a sentence length would be to
A. compare the average cost of crime being perpetrated by the average offender if released a year earlier with the average incarceration costs for that shorter sentence. B. compare the total cost of crime being perpetrated by the offender if released a year earlier with the incarceration costs for that shorter sentence. C. poll pro bono defense attorneys and follow their recommendation. D. compare the reduction in the total cost of (marginal cost) crime being perpetrated by the offender if released a year earlier with the reduction in incarceration costs (marginal benefit) for that shorter sentence.
The value of $100 left in a certificate of deposit for four years that earns 4.5% annually will be:
A. $117.00 B. $145.00 C. $119.25 D. $120.00