According to the Taylor Rule,if the Inflation Rate Is 3

question 120

Multiple Choice

According to the Taylor Rule,if the inflation rate is 3 percent and the GDP gap is 2 percent,what does the federal funds rate target equal?

• A) 8.5 percent
• B) 5.5 percent
• C) 3.5 percent
• D) 6.5 percent

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Definitions:

Sole Proprietorships

Sole proprietorships are businesses owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Sole Proprietor

The single person at the head of a sole proprietorship.

Terminated

Brought to an end; refers to processes, contracts, employment, or periods that have been concluded or stopped.

Business Ownership

The legal possession of a business entity, which includes the right to control its operations and benefit from its earnings.