Author Question: Since 2010, the federal funds rate has been well below the rate suggested by the Taylor rule. A ... (Read 58 times)

tiara099

  • Hero Member
  • *****
  • Posts: 588
Since 2010, the federal funds rate has been well below the rate suggested by the Taylor rule. A likely explanation for the discrepancy is that ________.
 
  A) the Fed's dual mandate prevents a close reliance on the Taylor rule
  B) policy makers decided that instability of the coefficients prevents the Taylor rule from having any role in policy decisions
  C) in the past, adherence to the Taylor rule led to policy mistakes
  D) all of the above
  E) none of the above

Question 2

Briefly explain the process of multiple deposit creation.
 
  What will be an ideal response?



pangili4

  • Sr. Member
  • ****
  • Posts: 346
Answer to Question 1

E

Answer to Question 2

Part of the money supply process in which an increase in bank reserves results in rounds of bank loans and creation of checkable deposits and an increase in the money supply that is a multiple of the initial increase in reserves.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

For a complete list of videos, visit our video library