According to the actual federal funds rate use the

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Modern Business Statistics with Microsoft Excel
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Chapter 1 / Exercise 13
Modern Business Statistics with Microsoft Excel
Anderson/Sweeney
Expert Verified
10.According to the actual federal funds rate (use the Effective Federal Funds Rate provided above for 2011-10-01), is the Fed being hawkish or dovish?A) hawkishB) dovishFeedback: The actual, effective funds rate = .07. The Fed is being very dovish since the Taylor rule implies ff = 5.05% but the Fed has ff down to .07%!Correct Answer(s):B11.Now consider the modified version of the Taylor using the unemployment gap instead of the GDP gap just like we did in the lectures. Also, we will use the PCE core rate of inflation instead of overall inflation like you used above - the Fed arguably cares more about core inflation than overall inflation.Modified Taylor Rule formula:ifTR = r* + πA+ 0.5[πA- π*] + (-1.25) [URA- NAIRU]
Points Earned:4.0/4.0
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Modern Business Statistics with Microsoft Excel
The document you are viewing contains questions related to this textbook.
Chapter 1 / Exercise 13
Modern Business Statistics with Microsoft Excel
Anderson/Sweeney
Expert Verified
Additional needed data from Federal Reserve data from October 1, 2011:Unemployment Rate URA= 8.7%NAIRU = 5.5%Inflation PCE Core (actual inflation) πA= 1.8%Now what is the federal funds rate implied by the modified Taylor Rule above?
Points Earned:4.0/4.0Correct Answer(s):B12.According to the actual federal funds rate, is the Fed being hawkish or dovish?
Points Earned:4.0/4.0
13.Unemployment benefits are an example of discretionary fiscal policy.
Points Earned:1.5/1.5
14.According to Ricardian Equivalence in a strict sense, the tax multiplier is zero.A) TrueB) FalseCorrect Answer(s):True
Points Earned:1.5/1.5
15.When looking at the GDP data from quarter 3 of 2012, government purchases accounted for a larger share of the economy than investment expenditures did.
Points Earned:1.5/1.5
16.According to one of the lectures featuring a pie chart on federal government expenditures, transfer payments went from about 25% of total expenditures in the 1960s to over 46% of total expenditures in 2010.
Points Earned:1.5/1.5

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