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Author Question: A decrease in the real interest rate acts as ________ for lenders and as ________ for borrowers. ... (Read 110 times)

2125004343

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on: Jun 30, 2018
A decrease in the real interest rate acts as ________ for lenders and as ________ for borrowers.
 
  A) an increase in wealth; an increase in wealth
  B) an increase in wealth; a decrease in wealth
  C) a decrease in wealth; an increase in wealth
  D) a decrease in wealth; a decrease in wealth

Question 2

If the inflation rate target is 2, the current inflation rate is also 2, and the output gap is zero, then according to the Taylor rule, the nominal federal funds rate should be ________ percent.
 
  A) zero
  B) two
  C) four
  D) three
  E) none of the above


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SamMuagrove

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

C


2125004343

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Reply 2 on: Jun 30, 2018
Gracias!

nathang24

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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