Suppose the Inflation Rate Is 2

question 3

Multiple Choice

Suppose the inflation rate is 2.5 percent, and the output gap is 1 percent. Using the Taylor rule, the Bank of Canada sets the overnight loans rate equal to

• A)3 percent.
• B)3.5 percent.
• C)5.25 percent.
• D)5.5 percent.
• E)5.75 percent.

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Definitions:

Examine If Open

A control logic instruction used in PLC programming to check if a specific condition or input is false or "open" before executing subsequent instructions.

Output Energize

The process of activating an output device or circuit, thereby enabling it to perform its intended function, such as turning on a light or motor.

Input Energize

refers to the condition in electrical or electronic circuits where an input signal or power source is applied, activating a component or process.

Dividend

A portion of a company's earnings that is distributed to shareholders, typically in the form of cash or additional stock.