Suppose the equilibrium real federal funds rate is 2 percent, the target rate of inflation is 2 percent, the current inflation rate is 4 percent, and real GDP is 2 percent above potential real GDP
If the weights for the inflation gap and the output gap are both 1/2, then according to the Taylor rule the federal funds target rate equals
A) 4 percent. B) 6 percent. C) 8 percent. D) 10 percent.
C
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Janae was fired from her job with Microsoft in the 2008-09 recession because Microsoft's sales dipped. Janae's unemployment would be best classified as
A) natural unemployment. B) cyclical unemployment. C) structural unemployment. D) sales-related unemployment. E) frictional unemployment.
The buyers and sellers in a resource market are:
a. household and firms respectively. b. banks and farmers respectively. c. households and land owners respectively. d. firms and household respectively. e. exporters and importers respectively.
The long-run industry supply curve in a decreasing-cost, perfectly competitive industry is
A. negatively sloped. B. positively sloped. C. perfectly inelastic. D. perfectly elastic.
The Paris Agreement on Climate Change of 2015 was signed by
A. only nations in Asia. B. nearly 200 nations. C. all nations in the world. D. only the United States and the European Union.