« previous next »

Author Question: How might using the Taylor rule improve the Fed's monetary policy? What will be an ideal ... (Read 155 times)

schs14

  • Hero Member
  • *****
  • Posts: 569
on: Jun 29, 2018
How might using the Taylor rule improve the Fed's monetary policy?
 
  What will be an ideal response?

Question 2

Refer to Figure 7-5. The efficient price of medical services is
 
  A) 40. B) 55. C) 65. D) > 65.


elyse44

  • Sr. Member
  • ****
  • Posts: 319
Reply #1 on: Jun 29, 2018
Answer to Question 1

The Taylor rules is a formula that sets the federal funds rate according to the inflation rate and the output gap. This rule has worked well in computer simulations when it comes to avoiding excessive inflation or recessions. Given this track record, it might improve the Fed's monetary policy and make the Fed better able to avoid high inflation and recessions. It also has the advantage of inflation targeting insofar as it removes uncertainty about what will be the Fed's policy.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Can We Improve the Tsunami Warning System Can We Improve the Tsunami Warning System
Rule of Nine for burns. Rule of Nine for burns.
To find derivative us the chain rule To find derivative us the chain rule
Find derivative using chain rule Find derivative using chain rule
Which of the following molecules are exceptions the octet rule? Which of the following molecules are exceptions the octet rule?
For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately
Video: Bond in biological molecules (Ionic, Covalent and Hydrogen bonds)/ How atoms bond?

For a complete list of videos, visit our video library