Using the Taylor rule, if the current inflation rate equals the target inflation rate and real GDP is greater 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 the same as B) will be less than
C) will be greater than D) may be greater than or less than
C
Economics
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The cost of risk is the same for everyone
Indicate whether the statement is true or false
Economics
Which of the following is most likely to happen if the Thai baht depreciates against the euro?
A. The number of European tourists visiting Thailand will increase. B. Thailand will have a larger trade deficit with the Euro area. C. Thai demand for European goods will increase. D. The money supply in Thailand will increase.
Economics