According to the Taylor rule, if output is above its full-employment level and inflation is less than 2%
A) the Fed should raise the Fed funds rate above 4%.
B) the Fed should reduce the Fed funds rate below 4%.
C) the Fed should make the Fed funds rate exactly 4%.
D) what the Fed should do is ambiguous.
D
Economics
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In the basket of goods that is used to compute the consumer price index, which of the following categories of consumer spending is the smallest?
a. education & communication b. apparel c. medical care d. recreation
Economics
The money demand curve will shift to the left if:
A. the nominal interest rate increases. B. the nominal interest rate decreases. C. the price level decreases. D. the price level increases.
Economics