Using the Taylor Rule,if the Current Inflation Rate Exceeds the Target

question 211

Multiple Choice

Using the Taylor rule,if the current inflation rate exceeds the target inflation rate and real GDP exceeds potential GDP,then the federal funds target rate ________ the sum of the current inflation rate plus the real equilibrium federal funds rate.

• A)will be greater than
• B)will be less than
• C)will be the same as
• D)may be greater than or less than

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Definitions:

Punishment

A process or action that decreases the likelihood of a behavior occurring again by presenting an unpleasant response to the behavior.

Oppositional Defiant

A disorder marked by a persistent pattern of angry, defiant, and vindictive behavior towards authority figures.

Conduct Disorder

A mental health disorder diagnosed in childhood or adolescence characterized by persistent behavior that violates social norms, rights of others, and age-appropriate rules.

Avoidant Personality

A personality disorder characterized by extreme sensitivity to rejection, social inhibition, and a feeling of inadequacy, leading to significant avoidance behavior.