When choosing a new interest rate, the neutral interest rate is an important starting point for the Federal Reserve because it is the rate at which:
A)there is macroeconomic equilibrium.
B)the economy is neither underperforming nor in an inflationary gap.
C)potential GDP has reached its maximum point.
D)there is no unemployment in the economy.

Question

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The Answer of When choosing a new interest rate, the neutral interest rate is an important starting point for the Federal Reserve because it is the rate at which:
A)there is macroeconomic equilibrium.
B)the economy is neither underperforming nor in an inflationary gap.
C)potential GDP has reached its maximum point.
D)there is no unemployment in the economy.

When Choosing a New Interest Rate, the Neutral Interest Rate