According to the Taylor Rule,if the Inflation Rate Is 3

question 120

Multiple Choice

According to the Taylor Rule,if the inflation rate is 3 percent and the GDP gap is 2 percent,what does the federal funds rate target equal?

• A) 8.5 percent
• B) 5.5 percent
• C) 3.5 percent
• D) 6.5 percent

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Definitions:

Income

The financial return or earnings from employment, investments, or business ventures.

Income Effect

The change in consumption that results from a change in real income, holding prices constant.

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Encapsulated forms of vitamins, designed to supplement the dietary intake of nutrients.