According to the Taylor Rule, for a given inflation rate, ________
A) every percentage point increase in the inflation rate increases the federal funds rate by 1.5 percentage points
B) if bank reserves double, the federal funds rate should double
C) every percentage point increase in the nominal interest rate increases the federal funds rate by 1 percentage point
D) if nominal output doubles, the federal funds rate should double
A
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A good is normal for a consumer if
A) it is always consumed in a consistent quantity. B) its consumption rises when income rises. C) its consumption falls when income rises. D) some minimal level of the good must be consumed to assure the consumer's survival.
Capital deepening occurs only when there is an increase in the physical capital per worker in a society
a. True b. False Indicate whether the statement is true or false