If the actual federal funds rate is 1 percent,when the target rate called for by the Taylor rule is 5 percent,this indicates that
A) monetary policy is overly expansionary and a shift toward a more restrictive policy would be appropriate.
B) monetary policy is too restrictive and a shift to a more expansionary policy would be appropriate.
C) monetary policy is unable to influence interest rates.
D) current monetary policy is on target and no policy shift is needed.
Correct Answer:
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