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ABC123
Based on the taylor rule use the following information to calculate the target federal funds rate?
Target inflation rate: 2%
Current inflation rate: 8%
Real equilibrium federal funds rate: 2%
Output gap: 2%
In this case the federal funds target rate is:
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Thanks for your help
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Suppose that an economy produces civilian goods and military goods. If technological breakthroughs increase its ability to produce military goods, then
a) fewer military goods will be produced
b) more civilian goods will be produced
c) the opportunity cost of producing military goods will rise
d) there will be productive inefficiency in the economy
e) the production possibilities frontier will pivot outward around the axis for military goods
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