Using the Taylor rule, if the current inflation rate equals the target inflation rate and real GDP is less than potential GDP, then the federal funds target rate ________ the sum of the current inflation rate plus the real equilibrium federal funds rate
A) will be greater than
B) will be less than
C) will be the same as
D) may be greater than or less than
Answer: B
You might also like to view...
If children go to school and become productive members of society
A) a negative externality is created by the schools. B) a positive externality is created by the schools. C) no externality is created by the schools. D) an externality is created that may be positive or negative.
If there was an increase in technology other things equal, real GDP growth would ____ and real GDP growth per capita would ____. a. increase; increase
b. increase; be indeterminate. c. decrease; decrease. d. decrease; be indeterminate
A defined contribution pension program is one in which
A. those in the plan, as well as their employer, contribute to an account according to a formula, and the investment of that account is under the control of the employee. B. the plan defines eligibility for retirement and benefits according to a set of rules and a formula. C. everyone gets the same amount, regardless of how much they work. D. benefits are untaxed.
The price of computers has fallen each year for the last 30 years. This is probably an example of the working of:
A. nonmarket forces. B. economic forces. C. political forces. D. social forces.