Which Statement Describes the Difference Between the Taylor Rule and Inflation

question 184

Multiple Choice

Which statement describes the difference between the Taylor rule and inflation targeting?

• A) The Federal Reserve uses inflation targeting, and the Bank of England uses the Taylor rule.
• B) The Taylor rule responds to past inflation, and inflation targeting is based on a forecast of inflation.
• C) Inflation targeting responds to past inflation, and the Taylor rule is based on a forecast of inflation.
• D) Inflation targeting is used in conducting fiscal policy, while the Taylor rule is used in monetary policy.

---

Definitions:

Visual Systems

Components of the central nervous system, including the eye and parts of the brain, that process visual information.

Puberty

The period during which adolescents reach sexual maturity and become capable of reproduction.

Preference

An individual's inclination towards or tendency to like, choose, or favor something over another, based on factors such as taste, value, convenience, or familiarity.

Pictures of Infants

Visual representations, such as photographs or drawings, of young babies or newborns.