The Taylor Rule Uses Three Variables to Determine the Target

question 242

Multiple Choice

The Taylor rule uses three variables to determine the target for the federal funds rate. Which of the following is NOT one of those variables?

• A) output gap
• B) inflation rate
• C) equilibrium real interest rate
• D) monetary base

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Definitions:

Public Nuisance

An act or omission that obstructs, damages, or inconveniences the rights of the community or the general public.

Private Nuisance

A disturbance or interference with an individual's enjoyment or use of their property, without trespassing onto it.

Issue Preclusion

Issue preclusion, also known as collateral estoppel, is a legal doctrine preventing a party from relitigating an issue that has already been judged in a court of law.

Severe

Describes an intense, harsh, or serious degree of something, often used in reference to conditions, punishments, or diseases.