In general, a formula that a central bank uses to set interest rates in response to changing economic conditions is called a
A) rate-of-return equation.
B) Taylor rule.
C) central bank reaction function.
D) market adaptation identity.
C
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Discuss the two different methods the Bureau of Economic Analysis (BEA) uses to place current values on foreign direct investments
What will be an ideal response?
In the money market, an excess supply of money is equivalent to an excess supply of bonds
Indicate whether the statement is true or false
In the absence of government
A) public goods are likely to be overprovided. B) market failure is less likely to occur. C) public goods are likely to be underprovided. D) the free-rider problem is more likely to occur.
Johnny has been working a lot of overtime during the most current economic boom. As a result, his income is high enough for him to move from the 10 percent tax bracket to the 15 percent tax bracket. So, Johnny pays a higher percentage of a higher income to the government this year. The increased amount paid to the government is an example of:
A. discretionary fiscal policy slowing the economy. B. automatic stabilizers slowing the economy. C. discretionary fiscal policy encouraging economic activity. D. automatic stabilizers encouraging economic activity.