The Taylor Rule

question 33

Multiple Choice

The Taylor rule

• A) shows how the Fed could set the federal funds rate.
• B) ignores price level stability to focus on responding to fluctuations in real GDP.
• C) focuses on only fluctuations in real GDP.
• D) is the rule actually followed by the Fed.

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Definitions:

One-Way Analysis Of Variance

A statistical method used to test the difference between the means of three or more independent groups on a single factor to determine if at least one group mean is statistically different.

Kruskal-Wallis Test

A non-parametric statistical test used to compare three or more independent samples to determine if they come from the same distribution.

Wilcoxon Tests

A nonparametric statistical test used to compare two paired groups to assess whether their population mean ranks differ.

Assembly Time

The duration required to assemble a product or system from its components.