Using the Taylor rule, if the current inflation rate equals the target inflation rate and real GDP equals potential GDP, then the federal funds target rate equals the
A) current inflation rate plus the real equilibrium federal funds rate.
B) real equilibrium federal funds rate.
C) current inflation rate.
D) current discount rate.
A
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The risk of a well-diversified portfolio depends only on the ________ risk of the assets in the portfolio
A) systematic B) nonsystematic C) portfolio D) investment
NCO plus domestic investment forms the:
A. demand for loanable funds in an open economy. B. demand for loanable funds in a closed economy. C. supply of loanable funds in an open economy. D. supply of loanable funds in a closed economy.
Alternating periods of growth and contraction in real GDP define:
A. The business cycle. B. Capitalism. C. Inflation. D. Macro equilibrium.
Historical evidence for the U.S. economy indicates that changes in investment over the business cycle are the biggest cause of changes in
a) profits. b) real GDP. c) consumer spending. d) auto sales.