The Taylor Rule specifies that the federal funds rate target should be equal to
A) 0.5 ( inflation rate) + 1.5 (GDP gap) + 1
B) 1.5 (inflation rate) + 0.5 (GDP gap) + 1.
C) interest rate - expected inflation rate.
D) equilibrium federal funds rate + inflation rate +1
Correct Answer:
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Q142: Q143: Which of the following statements is true? Q144: When is it best to sell bonds? Q145: Which of the following statements is true? Q146: Assume the Keynesian transmission mechanism is operational Q148: The demand for money rises.According to the Q149: Buddy bought a bond last year for Q150: According to the Taylor Rule: if the Q151: Assume the Keynesian transmission mechanism is operational Q152: There is an increase in the money
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