The Taylor rule links the Federal Reserve's target for the
A) federal funds rate to the money supply. B) money supply to changes in interest rates.
C) federal funds rate to economic variables. D) money supply to shifts in money demand.
C
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Which of the following is a correct way to measure productivity?
a. Divide the number of hours worked by the quantity of output. b. Divide the quantity of output by the number of hours worked. c. Determine how much output is produced in a given time. d. Determine how much time it takes to produce a unit of output.
The modern view of the Phillips curve suggests that:
A. when inflation is reduced, unemployment will fall below the natural rate. B. the Phillips curve is an unstable relationship. C. systematic demand stimulus policies will be unable to affect prices in the long run. D. there will be a trade-off between inflation and unemployment in the long run.
The opportunity cost of going to college full time away from home includes
A) the income you could have earned from a full-time job. B) the funds you would have saved if you had not paid the tuition. C) the time you could have spent with parents back home. D) All of the above are correct.
Present value is best defined as the:
A. worth or value today of future expected returns or costs. B. worth in the future of a current flow of returns or costs. C. current worth of a financial asset purchased in the past. D. expected future value of a financial asset purchased today.