Assume that the actual inflation rate is 3 percent, the target inflation rate is 2.5 percent, and that the percentage difference between actual and potential real GDP is 1 percent
According to the Taylor rule, the federal funds rate target should be A) 3.25 percent.
B) 5.75 percent.
C) 6.25 percent.
D) 5.50 percent.
C
Economics
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Credit cards are regularly used in economic exchanges, so credit card balances are included in the definition of money
Indicate whether the statement is true or false
Economics
One of moneys primary roles in the economy comes from the use of money to transfer purchasing power to the future. This role of money is called
A) store of value. B) unit of account. C) medium of exchange. D) standard of deferred payment.
Economics