The Taylor Rule Suggests That

The Taylor rule suggests that

A) the federal funds target rate should be equal to 2% plus the inflation rate plus one-half the inflation gap plus one-half the output gap.
B) the Federal Reserve should always increase the money supply at exactly the rate of inflation.
C) the money supply should be targeted so that the value of the dollar is fixed with respect to the price of gold.
D) the Federal Reserve should target a federal funds rate that will ensure a 1% rate of unemployment.