The equation now called the ______________ starts with a 2 percent real interest rate, and then instructs the Fed to lower the interest rate in proportion to any recessionary gap and to raise it in proportion to any excess of inflation above 2 percent.
A. Taylor rule
B. rule of 70
C. Spencer’s rule
D. None of the above is correct.
Answer: A
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Answer the next question on the basis of the following demand schedule.PriceQuantity Demanded$615243342516The price elasticity of demand is unit-elastic (based on the midpoint formula)
A. over the entire $6 to $4 price range. B. over the entire $3 to $1 price range. C. throughout the entire price range because the slope of the demand curve is constant. D. in the $4 to $3 price range only.
If a meat packing plant has 30 employees, each employee has a 1 in 90 chance of getting injured on the job, and the cost of treating a job-related injury is $18,000, then the annual cost per injury for each employee is
A) $6.67. B) $200. C) $600. D) $6,000.
The intersection of the market demand for labor and the market supply for labor determines the equilibrium wage rate
a. True b. False Indicate whether the statement is true or false
Tiger Woods, a professional golfer, pays a garage mechanic to change the motor oil of his car even though he can do the work himself. Which of the following best explains why Tiger Woods does NOT change the oil himself?
A) Tiger Woods has an absolute advantage in changing oil. B) Tiger Woods has a comparative advantage in changing oil. C) There is no opportunity cost for the garage mechanic to change oil. D) The opportunity cost of changing oil is higher for Tiger Woods than for the garage mechanic.