The Taylor rule
A)is an activist monetary policy rule
B)states that monetary growth should be decreased by 1% for every 1.5% increase in inflation
C)states that real interest rates should be increased by 0.5% for every 1% increase in inflation
D)both A and B
E)both A and C

Question

Quizplus · Accepted Answer

The Answer of The Taylor rule
A)is an activist monetary policy rule
B)states that monetary growth should be decreased by 1% for every 1.5% increase in inflation
C)states that real interest rates should be increased by 0.5% for every 1% increase in inflation
D)both A and B
E)both A and C

The Taylor Rule