According to Taylor's rule, all of the following variables help explain the behavior of the federal funds rate EXCEPT

Bonnie can produce either 10 hats or 20 scarves in a month. Phil can produce either 5 hats or 10 scarves in a month. Therefore:

A) Phil has a comparative advantage in hats, Bonnie in scarves. B) Bonnie has a comparative advantage in hats, Phil in scarves. C) Phil has a comparative advantage in both hats and scarves. D) Bonnie has a comparative advantage in both hats and scarves. E) Neither of them has a comparative advantage in hats or scarves.

As a result of a per-unit tax on output in a market: a. the quantity traded increases

b. the quantity traded does not change. c. the quantity traded decreases. d. a surplus is created at the new equilibrium price.