Author Question: According to the Taylor rule, the Fed should: a. lower the fed funds rate by 2.0 if inflation rises ... (Read 131 times)

tnt_battle · **on:** Jun 30, 2018

According to the Taylor rule, the Fed should:
a. lower the fed funds rate by 2.0 if inflation rises 1.0 above its target of 1.0.
b. raise the fed funds rate by 2.0 if inflation rises 1.0 above its target of 1.0.
c. lower the fed funds rate by 0.5 if inflation rises 1.0 above its target of 2.0.
d. raise the fed funds rate by 0.5 if inflation rises 1.0 above its target of 2.0.

Question 2

The phrase race to the bottom refers to the situation in which globalization results in countries competing for international investment by imposing low or no environmental regulations or labor standards.
a. True
b. False
Indicate whether the statement is true or false