Suppose the economy is thought to be 1 percent below potential (i.e., the output gap is ?1 percent), when potential output grows 4 percent per year. Suppose the Fed is following the Taylor rule, with an inflation rate of 4 percent over the past year. The equilibrium real fed funds rate is 3 percent and the weights on the output gap and inflation gap are 0.5 each. The federal funds rate is 8.5 percent. What is the inflation target?
A. 0 percent
B. 1 percent
C. 2 percent
D. 3 percent
Answer: A
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An example of an asset that is both personal-use and personal property is:
A. A company airplane used by the CEO for business travel. B. A storage building used by the CEO to store personal records. C. A computer used solely to monitor the CEO's investments and to complete her Form 1040. D. A computer used solely to email company employees regarding company activities. E. All of the assets are personal-use and personal property.
Your department hired a strategic planning consultant to restructure the workforce. However, you believe that the consultant added no value to the company and simply played back what you wanted to hear. You must write a letter to the president of the consulting company to discuss your dissatisfaction. Which of the following is the BEST approach to your letter?
a. Start with some facts about what the consultant was supposed to do. Enumerate what was done incorrectly. End with a pleasant message expressing your appreciation. b. Start with a statement about your dissatisfaction with the consultant. Continue with a list of things that the consultant did incorrectly. End with a direct statement about how worthless the consultant was. c. Start with some good things that the consultant did. Accentuate the positive and avoid as much negative information as possible. End pleasantly, saying that you hope you can do business again in the future. d. Start with some facts about what the consultant was supposed to do. Mention what the consultant did well, but also be clear about what the consultant did not do well. End with a pleasant message expressing the hope that the information you provided will assist the consulting company.
Combining economies of learning with the existing production technology allows a firm to
A. jump to a less steeper learning curve. B. jump to a flatter experience curve. C. move up a given experience curve. D. move down a given learning curve.
A horizontal restraint is any agreement that in some way restrains competition between rival firms competing in the same market
Indicate whether the statement is true or false