According to the Taylor Rule, If Inflation Has Risen by 6

question 105

Multiple Choice

According to the Taylor rule, if inflation has risen by 6 percentage points above its target of 2 percent, the Fed should

• A)grow the money supply at a rate of 6 percent per year.
• B)raise the real federal funds rate by 6 percentage points.
• C)raise the real federal funds rate by 3 percentage points.
• D)raise the real federal funds rate by 12 percentage points.

---

Definitions:

Idiographic Information

Personalized or unique data specific to an individual's case, often used in the study of personality and individual differences.

Technical Name

The specific and often more complex term used by professionals to refer to a concept, object, or phenomenon.

Predictive Validity

The ability of a test or other assessment tool to predict future characteristics or behaviors.

Interrater Reliability

A measure of the reliability of a test or of research results in which the consistency of evaluations across different judges is assessed. Also called interjudge reliability.