A practical limitation of using the Taylor rule for setting the target federal funds rate would be that it:

Name: A practical limitation of using the Taylor rule for setting the target federal funds rate would be that it:
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Quizplus · Accepted Answer

The Taylor rule requires accurate and up-to-date data on inflation, potential output, and the output gap. Real-time data may not be reliable, which may result in errors in setting the target federal funds rate. This is a practical limitation of using the Taylor rule.

A Practical Limitation of Using the Taylor Rule for Setting