According to the Taylor Rule,the Fed Should Raise the Federal

question 69

Multiple Choice

According to the Taylor rule,the Fed should raise the federal funds interest rate when inflation ________ the Fed's inflation target or when real GDP ________ the Fed's output target.

• A)rises above;drops below
• B)drops below;drops below
• C)rises above;rises above
• D)drops below;rises above

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Definitions:

Dangerous Drug

A substance that has been legally recognized as posing a significant risk of harm to those who use it, often due to its potential for abuse or addiction.

FDA

The Food and Drug Administration, an agency of the U.S. Department of Health and Human Services responsible for protecting public health by ensuring safety and efficacy of drugs, biological products, and medical devices.

Liability

Legal responsibility for one's actions or inactions, which may result in financial restitution or penalties.

Fiduciary Duty

A legal obligation requiring one party (the fiduciary) to act solely in another party's (the beneficiary's) interest when managing the latter's assets, involving loyalty and care.