The Taylor Rule is an example of
A) discretionary monetary policy.
B) rule-based monetary policy.
C) a monetary policy measure that always sets the money supply growth rate at 3 percent.
D) contractionary monetary policy.
E) none of the above
B
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Over half of government spending is discretionary spending
Indicate whether the statement is true or false
Promotional pricing is designed to take advantage of differences in the price elasticity of demand among customers. As such, it is an application of first-degree price discrimination
Indicate whether the statement is true or false
According to the interest rate effect, an increase in the price level, if other factors are held constant, will lead to
A) a reduction in total real spending on interest-rate-sensitive goods. B) an increase in the stock of real wealth held by the public. C) an outward shift of the aggregate demand curve. D) an increase in the real interest rate.
Which of the following statements is true?
a. b and d. b. Total revenue is maximized when elasticity is one. c. Goods are said to be price inelastic when the elasticity is greater than two. d. Demand for milk is more elastic than demand for football tickets. e. Demand for 5-cent candy is more elastic than demand for sweaters.