Author Question: If the Fed follows the Taylor rule and the economy goes into a recession, the Fed would A) raise ... (Read 61 times)

TFauchery · **on:** Jun 29, 2018

If the Fed follows the Taylor rule and the economy goes into a recession, the Fed would

A) raise the federal funds rate
B) reduce tax rates.
C) increase government expenditures.
D) lower the federal funds rate.
E) None of the above answers is correct.

Question 2

If real GDP exceeds potential GDP, then employment is ________ full employment, and the unemployment rate is ________ the natural unemployment rate.

A) equal to; below
B) above; below
C) equal to; equal to
D) below; above
E) above; above

frogdreck123456 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

B

TFauchery · **Reply 2 on:** Jun 29, 2018

Gracias!

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TYSM

Author Question: If the Fed follows the Taylor rule and the economy goes into a recession, the Fed would A) raise ... (Read 61 times)

TFauchery

If the Fed follows the Taylor rule and the economy goes into a recession, the Fed would A) raise ...

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frogdreck123456

If the Fed follows the Taylor rule and the economy goes into a recession, the Fed would A) raise ...

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