Author Question: Since 2010, the federal funds rate has been well below the rate suggested by the Taylor rule. A ... (Read 116 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?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

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

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

For a complete list of videos, visit our video library