Recall the Application. When applying the Taylor Rule to the decade of 2000, economist John Taylor found that compared to past experience, the Fed
A) raised interest rates much too high and much too quickly.
B) should have maintained interest rates instead of raising them slowly.
C) should have lowered interest rates at a much faster pace.
D) was much too aggressive in lowering interest rates.
D
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Spending so much on arms that the economy of an adversary collapses is called market warfare
a. True b. False
Agency problems appear in many settings within a firm. All of the following are examples, except which is NOT a good example of this problem?
a. Diversified stockholders are more enthusiastic on accepting business risks than are firm managers. b. Firm managers receive cash bonuses based on the performance of the firm. c. Employees sometime take items from the store in which they work. d. Lenders to firms want the managers to invest in safe projects to protect their collateral in the project but managers want to invest in projects that will make a name for them and warrant promotion. e. Firm managers sometime want to relax on the job.