Each of the following statements describes the behavior of the Taylor rule, which does not belong? A) The Taylor rule works equally well in the context of either an open or a closed economy. B) One way for exchange rate fluctuations show up in the Taylor rule is through the behavior of Y^{^}. C) One way for exchange rate fluctuations show up in the Taylor rule is through the behavior of . D) One way for exchange rate fluctuations show up in the Taylor rule is through the behavior of r. E) The Taylor rule requires a flexible exchange rate.

Question

Quizplus · Accepted Answer

The Answer of Each of the following statements describes the behavior of the Taylor rule, which does not belong? A) The Taylor rule works equally well in the context of either an open or a closed economy. B) One way for exchange rate fluctuations show up in the Taylor rule is through the behavior of Y^{^}. C) One way for exchange rate fluctuations show up in the Taylor rule is through the behavior of . D) One way for exchange rate fluctuations show up in the Taylor rule is through the behavior of r. E) The Taylor rule requires a flexible exchange rate.

Each of the Following Statements Describes the Behavior of the Taylor