According to the Taylor Rule, the Two MOST Important Factors

question 185

Multiple Choice

According to the Taylor rule, the two MOST important factors influencing the Federal Reserve's changing the federal funds rate are

• A) an inflation rate different from the Fed's target and output different from potential GDP.
• B) an inflation rate different from the Fed's target and increasing interest rates.
• C) increasing interest rates and output different from potential GDP.
• D) output different from potential GDP and unemployment rates different from full employment.

---

Definitions:

Complaint

The initial document filed by a plaintiff in a civil lawsuit, outlining the basis of their legal claim.

Requests for Admission

A legal process in which one party asks the other to admit the truth of specific facts or the genuineness of documents, to simplify the trial process.

Depositions

The sworn, out-of-court oral testimonies of witnesses recorded for later use in court proceedings and discovery processes.

Counterclaim

A claim made by a defendant in a civil lawsuit against the plaintiff. In effect, a counterclaiming defendant is suing the plaintiff.