According to the Taylor rule,
a. the Fed would have the discretion to choose an appropriate inflation rate
b. the Fed would announce targets for the inflation rate and real GDP
c. the Fed would allow the inflation rate to increase by about 0.5 percent per year
d. the Fed would allow the price level to increase by about 0.5 percent per year
e. Congress would set an annual inflation rate target
B
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If the game is repeated indefinitely, and the vendors adopt a trigger strategy such that they would start charging the low price only if the other vendor charged a low price last time, what would be the Nash equilibrium?
a. Both the vendors price high b. Both the vendors price low c. Vendor A prices high, vendor B prices low d. Vendor B prices high, vendor A prices low
Consider Figure 12.3. Becky chooses to charge a low price:
A. only if David chooses a low price. B. only if David chooses a high price. C. regardless of whether David chooses a high or low price. D. in order to induce David to choose a high price.
Refer to the information provided in Figure 7.11 below to answer the question(s) that follow. 
Figure 7.11
Refer to Figure 7.11. If the firm's cost of capital is $24 per unit and its cost of labor is $48 per unit, the isocost line represents a total cost of
A. $2,400. B. $3,600. C. $4,800. D. $7,200.
You win a lottery that pays $50,000 each year for the next 10 years beginning next year. How much are your winnings worth today?
A. $0 B. $50,000 C. $500,000 D. indeterminate with the given information