Suppose the actual federal funds rate is equal to the rate implied by a particular inflation goal. In this situation, the Taylor rule implies that
A) monetary policy will tend to produce that inflation rate.
B) monetary policy is contractionary.
C) monetary policy is expansionary.
D) fiscal policy will result in a balanced budget.
A
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In economics we learn that
A) tradeoffs allow us to have more of everything we value. B) tradeoffs allow us to avoid the problem of opportunity cost. C) opportunity costs are all of the possible alternatives given up when we make a choice. D) None of the above answers is correct.
An increase in oil prices will shift the aggregate:
a. demand curve leftward. b. demand curve rightward. c. supply curve leftward. d. supply curve rightward.
Recall the Application the Joint Committee on Taxation and how Congress accounts for the dynamic effects of its policies to answer the following questions.According to the Application, the Trump Tax cuts would have increased the deficit by ________ billion, without taking into account the dynamic effects.
A. $1456 B. $1591 C. $286 D. $641
A market demand curve is found by
A. taking the demand curve of the "representative" consumer. B. adding the prices and the quantities demanded by a consumer. C. adding the quantities demanded for each individual consumer at each price. D. adding the prices each consumer would pay for each quantity.