The Taylor rule links the Federal Reserve's target for the
A) money supply to shifts in money demand.
B) money supply to changes in interest rates.
C) federal funds rate to economic variables.
D) federal funds rate to the money supply.
Answer: C
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The percentage of total output allocated to the production of new plants, equipment, and structures is the
A. Entrepreneurial rate. B. Corporate allocation rate. C. Investment rate. D. Savings rate.
"Crowding out" will ____ expansionary fiscal policy because it results in ____
a. weaken; a depreciated value of the dollar b. strengthen; reduced imports c. weaken; increased interest rates d. strengthen; increased tax revenues
For a perfectly competitive firm, at the profit-maximizing output average revenue equals marginal cost
Indicate whether the statement is true or false
International trade has the potential to ____ the availability of goods and services to ____
a. increase; those nations who export more than they import b. increase; nations that have an absolute advantage in the production of a good or service c. increase; all nations d. decrease; all nations