The Taylor rule links the Federal Reserve's target for the
A) federal funds rate to the money supply. B) money supply to changes in interest rates.
C) federal funds rate to economic variables. D) money supply to shifts in money demand.
C
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Many economists who accept the real business cycle explanations of economic fluctuations
a. believe that the sharp rise in the relative price of imported oil was the central cause of the deep recession in the United States in the mid-1970s. b. believe that the restrictive Federal Reserve monetary policy was the central cause of the deep recession in the United States in the mid-1970s. c. believe that the sharp rise in the relative price of imported oil was not the main cause of the deep recession in other industrialized nations in the mid-1970s. d. both a and c. d. None of the above
At its profit-maximizing output, the firm in the above figure incurs a total cost of production of
A) $7,000. B) $9,000. C) $6,300. D) $3,900.