Between 2011 and 2019, the actual federal funds rate
A. moved in directions opposite to the rates predicted by the Taylor rule.
B. tended to higher than the rates predicted by the Taylor rule.
C. tended to be lower than the rates predicted by the Taylor rule.
D. followed closely the rates predicted by the Taylor rule.
Answer: C
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Why did the classical economists think that large-scale unemployment was not possible in a market economy?
What will be an ideal response?
Fogel and Engerman (1974) argue that slavery was economically viable until 1860
Indicate whether the statement is true or false
If the government wishes to correct the existence of positive externality, it could
A) grant subsidies to consumers to stimulate demand. B) impose a tax on the producers to stimulate supply. C) impose taxes on consumers to stimulate demand. D) grant subsidies to producers to reduce supply.
Fogel argued that railroads were more cost effective than canals because railroads were faster and were in service all year and that using rail instead of canals would ____
a. lower freight rates on the railroads b. lower government subsidies for railroads c. lower eastern inventories of grain in the d. reduce the wheat being shipped to Europe