The "Taylor rule" for monetary policy provides the Fed with a
a. mechanical prescription for monetary policy.
b. benchmark to guide policy decisions.
c. time frame for discount rate changes.
d. rule for changing the M1 money supply.
b
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The International Fisher Effect implies that the country with the higher interest rate should have lower inflation.
a. true b. false
According to Alfred Chandler (1977), big business could be justified, at least in part, by
(a) a rapid rate of innovation among big firms. (b) periodic recessions in which alert big businessmen buy out bankrupt firms and expand operations. (c) a relatively low rate of bankruptcies among big firms. (d) its ability to take advantage of scale economies—big business could best take advantage of technology and economies resulting from large-scale production processes.
A 2005 U.S. Supreme Court ruling was considered very controversial because the justices cited international opinion regarding
a. human trafficking. b. undocumented immigrants. c. abortion. d. the death penalty.
__________ flows from government to households
A) A transfer payment B) A tax payment C) The Laffer Curve D) Crowding out