According to Taylor's Rule,all of the Following Variables Help Explain

question 132

Multiple Choice

According to Taylor's rule,all of the following variables help explain the behavior of the federal funds rate EXCEPT

• A) output gap.
• B) current inflation.
• C) inflation gap.
• D) yield curve.

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Definitions:

Accounting Profit

The profit a company has after deducting all its expenses from its total revenue.

Verizon Wireless

A major American telecommunications company known for providing wireless products and services.

Implicit Cost

The opportunity cost incurred by using assets, resources, or funds for a specific purpose rather than the next best alternative.

Competitive Rate

Pricing that is on par or better than what is offered by competitors in the market, often used to attract customers.