According to the Taylor Rule, If Inflation Is 3 Percent

question 368

Multiple Choice

According to the Taylor rule, if inflation is 3 percent and there is an unemployment gap of −2 percent, the Fed's targeted interest rate should be

• A) 7.5 percent.
• B) 3 percent.
• C) 2 percent.
• D) 1 percent.

---

Definitions:

Counseling

A professional service offering guidance and support to individuals facing personal, social, or psychological challenges.

Trauma

A deeply distressing or disturbing experience that may have long-lasting psychological impacts.

Crisis Counseling Program

A structured support and intervention service designed to assist individuals or communities in coping with and recovering from crisis situations.

Open Door Policy

A management or governance approach that encourages transparency, communication, and accessibility between different levels of an organization.