If the Fed follows the Taylor rule and the economy goes into a recession, the Fed would
A) raise the federal funds rate
B) reduce tax rates.
C) increase government expenditures.
D) lower the federal funds rate.
E) None of the above answers is correct.
D
You might also like to view...
This factor contributes to the winner's curse
a. your estimate of the value of the object was the most optimistic b. your bid was not the highest c. there were not many other bidders you had to beat out d. you did not shade your bid enough
Economists who believe in encouraging concentration
a. are clearly wrong b. think that high prices are beneficial to society c. think that lower prices result from economies of scale d. want the government to break up monopolies e. favor a laissez-faire approach
An optimal purchase is one that maximizes total utility
a. True b. False Indicate whether the statement is true or false
An investment in human capital will be financially profitable if the present discounted value of the future earnings generated by the investment exceeds the
a. present discounted value of both the direct and indirect costs of the investment. b. dollar amount of the direct and indirect costs of the investment. c. present discounted value of only the direct costs of the investment. d. present discounted value of only the indirect costs of the investment.