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Author Question: The notion that the central bank should set its federal funds target by a formula that puts weight ... (Read 16 times)

corkyiscool3328

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on: Jun 30, 2018
The notion that the central bank should set its federal funds target by a formula that puts weight on both output and inflation gaps is known as ________.
 
  A) the Taylor rule
  B) the constant growth rate rule for money
  C) the equation of exchange
  D) the Lucas rule

Question 2

Hector's wealth is zero, he expects to work for another 45 years at a constant salary of 80,000 and live for another 60 years. Assuming taxes are zero, if Hector completely smooths consumption over his lifetime, his annual consumption is
 
  A) 60,000.
  B) 62,222.
  C) 80,000.
  D) 106,667.


yasmin

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

A

Answer to Question 2

A


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