Using Taylor's Rule,when the Equilibrium Real Federal Funds Rate Is

question 12

Multiple Choice

Using Taylor's rule,when the equilibrium real federal funds rate is 2 percent,there is no output gap,the actual inflation rate is zero,and the target inflation rate is 2 percent,the nominal federal funds rate should be

• A)0 percent.
• B)1 percent.
• C)2 percent.
• D)3 percent.

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Definitions:

Timing

The selection of the precise moment for doing something for optimum effect, such as delivering a punchline or making a decision.

Teratogen

is any substance or agent that can cause congenital anomalies or increase the incidence of an anomaly in a population.

Placental Barrier

Refers to the cellular and structural barrier formed by the placenta, which separates the mother's blood from the fetus's blood, allowing exchange of nutrients and waste while protecting the fetus from harmful substances.

Unborn Child

A developing fetus or embryo that has not yet been born, typically in the context of pregnancy.