In an open economy, increases in government spending can crowd out consumption, investment, or net exports

According to the Taylor rule, the Fed should:

a. lower the fed funds rate by 0.5% if RGDP increases 1.0% over potential GDP. b. raise the fed funds rate by 0.5% if RGDP increases 1.0% over potential GDP. c. raise the fed funds rate by 1.0% if RGDP increases 0.5% over potential GDP. d. raise the fed funds rate by 2.0% if RGDP increases 0.5% over potential GDP.

Advertising that is intended to alter a consumer's tastes and preferences and induce the customer to purchase a particular product is

A) persuasive advertising. B) educational advertising. C) informational advertising. D) directional advertising.