Suppose the inflation rate target is "0" and the long run federal funds target is also "0." If the inflation rate is 4% and the output gap is -2%, the federal funds rate set by the Taylor rule is ________

Why might a group of countries wish to have a common currency? Explain four reasons

What will be an ideal response?

The excess burden or deadweight loss of a tax refers to the

a. increase in product price as a result of the tax. b. growth in government funded programs as a result of the revenue generated by the tax. c. loss of disposable income consumers suffer from the tax. d. reduction in gains from mutually beneficial exchanges that are eliminated as a result of the tax.