Suppose the equilibrium real federal funds rate is 3 percent, the target rate of inflation is 3 percent, the current inflation rate is 1 percent, and real GDP is 8 percent below 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) -3 percent. B) -1 percent. C) 3.5 percent. D) 7 percent.
B
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The benefits received principle means those with the least ability to pay should be the ones to receive the benefits
a. True b. False Indicate whether the statement is true or false
As the number of sellers in an oligopoly becomes very large,
a. the quantity of output approaches the socially efficient quantity. b. the price approaches marginal cost. c. the price effect is diminished. d. All of the above are correct.
Which statement is true?
A. Employment discrimination has ceased to exist. B. Women working full time now earn virtually the same amount as men. C. The poverty rate for blacks and Hispanics is three times the poverty rate for whites. D. Property income is mainly paid in the form of rent.
Critics of unions tend to focus on the fact that unions
A) tend to generate higher wages. B) reduce profits. C) are politically active. D) engage in restrictive labor practices.