The Taylor Rule (Where a and B Are Positive Parameters)

question 49

Multiple Choice

The Taylor rule (where a and b are positive parameters) is represented by:

• A) i = i* + a(n* - n ) - b(un - u).
• B) i = i* + a(n - n*) - b(un - u).
• C) i = i* + a(n - n*) - b(u - un).
• D) i = i* + a(n* - n ) + b(u - un).
• E) i = i* + a(n - n*) + b(u - un).

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