Since 2010, the federal funds rate has been well below the rate suggested by the Taylor rule. A likely explanation for the discrepancy is that ________
A) the Fed's dual mandate prevents a close reliance on the Taylor rule
B) policy makers decided that instability of the coefficients prevents the Taylor rule from having any role in policy decisions
C) in the past, adherence to the Taylor rule led to policy mistakes
D) all of the above
E) none of the above
E
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A production method that relies on large quantities of machines and equipment and smaller quantities of labor is referred to as a:
A) variable-input-intensive method of production. B) labor-intensive method of production. C) technology-intensive method of production D) capital-intensive method of production.
Of the determinants of labor productivity, the more important one is
A) the capital-labor ratio. B) the size of the labor force. C) total factor productivity. D) the hours worked by the labor force.
Why were banking panics and failures largely eliminated after 1933?
a. There were fewer recessions. b. There was more government spending. c. All U.S. currency began to be backed by gold. d. Congress created deposit insurance. e. The banking sector became less important as the US became a more trade-oriented economy.
When regulating a firm, setting price equal to marginal cost does not necessarily require providing a subsidy if
a. it always requires providing a subsidy b. ATC is always falling c. MC is always falling d. variable costs are covered e. ATC is U-shaped