The art of monetary policy requires acting in accordance with the Taylor Rule.
Answer the following statement true (T) or false (F)
False
The art of monetary policy takes judgments into account rather than following a prescribed rule.
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Suppose the U.S. government encouraged new medical school graduates to take over existing practices from doctors wishing to retire by paying both the new and retiring doctors $100,000. These doctors would be exemplifying the economic idea that
A) people are rational. B) people respond to economic incentives. C) optimal decisions are made at the margin. D) equity is more important than efficiency.
Suppose a monopolist faces the following demand curve.
If the monopolist were to sell 20 units of output, its total revenue would be:
A. $50. B. $140. C. $100. D. $1,000.
Current equilibrium output equals $2,500,000, potential output equals $2,600,000, and the marginal propensity to consume equals 0.75. Under these conditions, a Keynesian economist is most likely to recommed
A) decreasing taxes by $25,000 B) decreasing taxes by $100,000 C) increasing government spending by $25,000 D) increasing government spending by $33,333 E) increasing government spending by $100,00
Distinguish between the balance of payments and the balance of trade
What will be an ideal response?