The Equation Now Called the ______________ Starts with a 2

question 93

Multiple Choice

The equation now called the ______________ starts with a 2 percent real interest rate, and then instructs the Fed to lower the interest rate in proportion to any recessionary gap and to raise it in proportion to any excess of inflation above 2 percent.

• A)Taylor rule
• B)rule of 70
• C)Spencer's rule
• D)None of the above is correct.