According to the Taylor rule, when real GDP is equal to potential GDP, and the inflation rate is equal to its target rate of two percent, the Federal funds rate should be:
A. 2 percent and this implies a real interest rate of 0 percent
B. 2 percent and this implies a real interest rate of 4 percent
C. 4 percent and this implies a real interest rate of 2 percent
D. 4 percent and this implies a real interest rate of 4 percent
C. 4 percent and this implies a real interest rate of 2 percent
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In the probit regression, the coefficient ?1 indicates
A) the change in the probability of Y = 1 given a unit change in X B) the change in the probability of Y = 1 given a percent change in X C) the change in the z- value associated with a unit change in X D) none of the above
Which of the following is not true of Federal Reserve notes? a. They are fiat money
b. They are a liability of the Fed. c. They are redeemable for other Federal Reserve notes. d. They are redeemable for gold. e. They are counted as currency in the money supply