If variables x and y move up and down together, they are
A) positively related.
B) negative related.
C) unrelated.
D) trend related.
A
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According to the Taylor rule, if output is above its full-employment level and inflation is less than 2%
A) the Fed should raise the Fed funds rate above 4%. B) the Fed should reduce the Fed funds rate below 4%. C) the Fed should make the Fed funds rate exactly 4%. D) what the Fed should do is ambiguous.
Buying insurance can create a moral hazard
Indicate whether the statement is true or false
Which of the following is a measure of standard of living that is not included in GDP?
a. recreation and travel b. literacy level c. medical expenses d. college tuition
The amount of money paid to a retiree from a defined contribution plan depends on how well investments perform.
Answer the following statement true (T) or false (F)