According to the Taylor rule, the overnight interest rate should be set at ________.
A) π + iₒᵣ - 0.5(π - π*) - 0.5(y - y)
B) π - iₒᵣ - 0.5(π - π*) - 0.5(y - y)
C) r + π
D) r - π
E) none of the above
Correct Answer:
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