A Taylor rule advocates changing interest rates in response to changes in inflation and output.

Name: A Taylor rule advocates changing interest rates in response to changes in inflation and output.
Brand: Quizplus
Rating: 4.7 (52 reviews)

Question

Quizplus · Accepted Answer

The Taylor rule is a monetary policy guideline that suggests how central banks should adjust interest rates based on changes in inflation and the output gap (the difference between actual and potential economic output).

A Taylor Rule Advocates Changing Interest Rates in Response to Changes