Using the Taylor rule, if inflation is 1 percent, desired inflation is 2 percent, and output is 2 percentage points above potential, the Fed should target a federal funds rate of:
A. 3.0.
B. 3.5.
C. 6.5.
D. 4.5.
Answer: B
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Due to the fact that Curly used his frequent flyer miles to fly to visit Moe, Curly told Moe that it didn't cost him anything to visit. Is Curly correct?
A. Yes, because Curly could stay at Moe's house for free. B. No, because Curly had to pay for earlier trips in order to earn the frequent flyer miles. C. No, because Curly could have used his frequent flyer miles to go somewhere else instead. D. Yes, because Curly's frequent flyer miles made the trip free.
New firms are able to enter monopolistically competitive markets because there are low barriers to entry
Indicate whether the statement is true or false
Many health economists believe that health-care reform will:
a. decrease demand for new, better, and more expensive medical advances. b. lower premiums for young adults c. eliminate private health insurance entirely. d. have a very limited effect on reducing government health-care expenditures.
Equity is synonymous with fairness.
Answer the following statement true (T) or false (F)