The Taylor Rule

question 237

Multiple Choice

The Taylor rule

• A) is equivalent to the inflation rule.
• B) targets the federal funds rate.
• C) is the official rule adopted in the Federal Reserve Act.
• D) targets GDP and employment.

---

Definitions:

Self-directed Speech

Internal or out-loud conversation one has with oneself, often used for self-guidance or problem-solving.

Self-control

The capacity to control our feelings, thoughts, and actions when confronted with challenges and spontaneous desires.

Contrast Assumption

The assumption that objects have only one label. Also known as the mutual exclusivity assumption (if a word means one thing, then it cannot mean another).

One Label

The concept of using a single term or classification to describe or identify something, often simplifying complex attributes.