Suppose the actual federal funds rate is above the rate implied by a particular inflation goal. In this situation, the Taylor rule implies that
A. monetary policy is contractionary.
B. monetary policy is neither expansionary or contractionary.
C. fiscal policy is expansionary.
D. monetary policy is expansionary.
Answer: A
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The market for bagels contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars) depends on whether they abide by the agreement or cheat on the agreement. 
In the Nash equilibrium of this game:
A. Bagel World abides and Bagels 'R' Us cheats B. both firms abide by the agreement C. Bagel World cheats and Bagels 'R' Us abides D. both firms cheat on the agreement
Which of the following is a monetary policy intended to rein in inflation?
A. Raising the interest rates to increase investment spending B. Decreasing the money supply to shift the aggregate demand curve leftward C. Reducing interest rates to increase investment spending D. Increasing the money supply to shift the aggregate demand curve rightward
Corporation
What will be an ideal response?
The definition of the adult population is those who are 16 years and older and who are
A. employed or unemployed. B. in the labor force or not in the labor force. C. in the labor force. D. not in the labor force.