If the federal funds rate is set by the Taylor rule and the output gap increases by 5 percentage? points, everything else remaining? unchanged, the federal funds rate should? ________. A.increase by 5 percentage point B.increase by 2.5 percentage points C.decrease by 5 percentage points D.decrease by 2.5 percentage points
If the value of a government minus−taxation multiplier is? 1.8, which of the following is likely to be true if all other variables remain? unchanged? A. A? $1 increase in taxation increases gross domestic product by? $1.80. B. A? $1.80 reduction in taxation increases gross domestic product by? $1.80. C.A? $1 reduction in taxation increases gross domestic product by? $1.80. D.A? $1.80 increase in taxation increases gross domestic product by? $1.80