Help help (q3)suppose that inflation is 2% the federal funds rate is 4% and inflation rises 3% according to the Taylor rule what should the federal funds target rate be???? A) 3.5% B) 5.5% C) 4% D) 5% (Q4) the government wants to enact discretionary fiscal policy to reduce inflation which of the following will shift the AD curve to the left? A) sending stimulus payments directly to households B) decreasing government spending on education C) decreasing household income taxes D) a decrease in stock market investments (Q5) if the federal government collects $5 trillion in tax revenue and spends $7 trillion then they have $2 trillion in deficit spending and increased the debt by $2 trillion A) false saying this is both debt and deficit is double counting B) true deficit spending is in the current year while the overall debt also increases by the same amount C) true the revenue is divided evenly between debt and deficit D) false only the debt increases but the deficit spending remains the same (Q6) assume that an economy has a GDP multiplier of 10 what is their marginal propensity to consume? A) 0.50 B) 0.80 C) 0.90 D) 0.10 (Q7) suppose the fed wants to conduct expansionary policy which of the following would they choose to do? A) decrease income taxes B) sell treasury securities C) buy treasury securities D) increase income taxes