True or false question, and give reason why choose True or False
11. The period from 1985 to 2007 is referred to by many as “The Great Calm.”
12. The Fed’s actions during WWI led to double digit deflation in the U.S.
13. The Fed’s ceiling on interest rates a bank could pay is known as “Regulation K.”
14. The Taylor Rule uses macroeconomic data to determine the optimal federal funds rate of interest.
15. If the Fed’s target inflation rate was 3%, actual inflation was 2%, output was at its potential and the real federal fund rate was 4%, then the Taylor Rule would advise that the target federal funds rate should be 5.5%.
11. The period from 1985 to 2007 is referred to by many as "The Great Calm." TRUE.The Great Moderation from the mid-1980s... View the full answer
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11-true because Between 1985 or so and 2007, the U.S. macroeconomy, particularly output, was much less volatile than... View the full answer