The Taylor rule (where a and b are positive parameters) is represented by
A) i = i + a(? - ?) - b(un - u).
B) i = i + a(? - ? ) + b(u - un).
C) i = i + a(? - ?) - b(u - un).
D) none of the above
C
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Which of the following statements is correct?
I. When economists derive the aggregate demand curve, they are looking at the effect of the price level on one commodity only. II. Any non-price-level change that increases total planned real spending on domestic goods shifts the AD curve to the right. A) I only B) II only C) Both I and II D) Neither I nor II
Explain the difference between a cartel and tacit collusion. Is tacit collusion illegal in the United States? Explain
What will be an ideal response?
The process in which people seeking higher yielding securities take their funds out of the banking system thus restricting the amount of funds banks can lend is called
A) capital mobility. B) loophole mining. C) disintermediation. D) deposit jumping.
When the economy is initially at full employment:
a. expansionary monetary policy will tend to increase the price level in the short run and the long run. b. expansionary monetary policy will tend to increase the price level in the short run but not the long run. c. expansionary monetary policy will tend to increase the price level in the long run but not the short runq d. expansionary monetary policy will not tend to increase the price level in the short run or the long run.