Suppose the inflation rate target is "0" and the long run federal funds target is also "0." If the inflation rate is 4% and the output gap is -2%, the federal funds rate set by the Taylor rule is ________
A) 8% B) 2% C) 5% D) 6%
C
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Mary has to choose between a four-day vacation and a five-day vacation to the same place. To arrive at the optimal choice, which optimization technique do you think will be arithmetically easier and faster to implement and why?
What will be an ideal response?
One reason that lawyers might prefer a contingent contract when representing a plaintiff in a tort case is that
A) lawyers are risk neutral. B) diversification of many cases allows lawyers to reduce risk. C) lawyers are typically confident about winning every case. D) hourly rates for lawyers are usually very low.
Which of the following could be considered an example of a monopsony?
a. a professional sports league b. the only auto repair shop in a small town c. a single mining firm that was the only employer in the area d. all of the above
The Dango describes
A. covert collusion in the Japanese construction industry. B. a Korean business arrangement whereby only firms with insider connections may enter an industry. C. a bribe paid by colluding business firms to get government contracts in Asia. D. the price set by the price leader in Eastern European oligopolies.