According to the Taylor Rule, If the Output Gap Rises

question 15

Multiple Choice

According to the Taylor Rule, if the output gap rises by 2% and inflation rises by 1%, then the federal funds rate should rise by

• A) 2.0%.
• B) 2.5%.
• C) 3.0%.
• D) 3.5%.

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Definitions:

Community Development

A process where community members come together to take collective action and generate solutions to common problems.

Poverty Line

A threshold income level below which an individual or family is considered to be living in poverty.

Social Network

A platform or community of individuals connected by various social relationships, such as friendship, kinship, common interests.

Microsystems

Small, immediate environments where individuals interact and develop, such as families or classrooms.