Author Question: The Taylor rule specifies a. a constant relationship between interest rates and output. b. a ... (Read 91 times)

bucstennis@aim.com · **on:** Jun 30, 2018

The Taylor rule specifies

a. a constant relationship between interest rates and output.
b. a constant relationship between interest rates, output, and inflation.
c. a flexible relationship between interest rates, output, and inflation.
d. a fixed relationship between inflation and output.
e. none of the above.

Question 2

According to supply-side theory, a cut in taxes will tend to cause ________.

A) a decline in the amount of total tax revenue collected
B) no change in the amount of total tax revenue collected
C) an increase in the amount of total tax revenue collected
D) individual workers to devote more time to leisure activities