According to the Taylor rule, when inflation and/or output is above its target, then:
a. the federal funds rate must be negative.
b. the federal funds rate must be above its target.
c. the federal funds rate must be above inflation.
d. none of the above are correct.
C
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The Fed accidentally discovered open market operations when
A) it came to the rescue of failing banks in the early 1930s, and found that its purchases of bank loans injected reserves into the banking system. B) it purchased securities for income following the 1920-1921 recession. C) it attempted to slow inflation in 1919 by selling securities and found that its sales drained reserves from the banking system. D) it reinterpreted a key provision of the Federal Reserve Act.
Transfer payments have reduced poverty among the elderly, but poverty among females has not fallen
a. True b. False