Reducing transfer payments is an appropriate way to counteract a recessionary gap

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 ________

A) 8% B) 2% C) 5% D) 6%

Which is a better outcome for income and standard of living levels for large nations?

a. no tariffs b. low tariffs c. high tariffs d, equal tariffs for all nations