The Taylor rule is an example of
A)a targeting rule focused on the monetary base.
B)an instrument rule based on M1.
C)a targeting rule focused on the federal funds rate.
D)an instrument rule focused on the monetary base.
E)an instrument rule focused on the federal funds rate.

Question

Quizplus · Accepted Answer

The Taylor rule is an instrument rule that provides guidelines for setting the federal funds rate based on economic conditions like inflation and output.

The Taylor Rule Is an Example of