Excess burden is the total burden of a tax minus the tax revenue generated by the tax.

In the Solow model, if f(k) = 2k0.5, s = 0.25, n = 0.05, and d = 0.2, what is the value of k at equilibrium?

A) 1 B) 2 C) 3 D) 4

Among the prospective rules that set target variables directly, only the nominal GDP rule

A) provides a nominal anchor. B) is easy for the Fed to achieve. C) allows a neutral response to a supply shock. D) is insulated from the effects of unstable velocity.