Suppose that the Fed has decided to utilize the Taylor rule to implement monetary policy
If the actual federal funds rate target is presently below the level specified by the Taylor rule and has been lower then this level for several weeks, then this would be a signal that A) monetary policy is very expansionary.
B) monetary policy is very contractionary.
C) the Fed should halt efforts to target the money supply.
D) the Fed should switch to targeting the money supply instead of the federal funds rate.
A
You might also like to view...
A demand curve that has constant price elasticity of demand coefficient equals to one at all points is a(n):
a. rectangular hyperbola. b. downward-sloping straight line. c. upward-sloping straight line. d. none of these.
Which of the following explains why long-run average total cost at first decreases as output increases?
a. diseconomies of scale b. less efficient use of lumpy inputs c. fixed costs become spread out over more units of output d. gains from specialization of inputs e. marginal costs rise at a slower rate than average costs in the short run
Which of the following sayings best reflects the concept of opportunity costs
What will be an ideal response?
Using the AD-AS model, if consumers and business become more optimistic about the future direction of the economy and increase spending, then:
A. aggregate demand will decrease. B. aggregate demand will increase. C. long-run aggregate supply will increase. D. long-run aggregate supply will decrease.