John Taylor's Rule for Setting the Federal Funds Rate Proposes

question 99

Multiple Choice

John Taylor's rule for setting the federal funds rate proposes increasing the nominal federal funds rate as inflation _____ and the GDP gap _____.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

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Definitions:

Observational Learning

The process of acquiring knowledge and skills by observing and imitating the actions of others, without direct instruction or experience.

External Locus

A belief that control over events and outcomes lies outside oneself.

Exercise Regimen

A planned, structured set of physical activities designed to improve or maintain physical fitness.

Motivation

The method that starts, directs, and sustains actions aimed at achieving specific goals.