Using Taylor's Rule,when the Equilibrium Real Federal Funds Rate Is

question 45

Multiple Choice

Using Taylor's rule,when the equilibrium real federal funds rate is 3 percent,the positive output gap is 2 percent,the target inflation rate is 1 percent,and the actual inflation rate is 2 percent,the nominal federal funds rate target should be

• A)5 percent.
• B)5.5 percent.
• C)6 percent.
• D)6.5 percent.

---

Definitions:

Short-Term Memory

The ability to keep a limited volume of data in a state of immediate readiness for a brief duration.

Long-Term Memory

The phase of the memory process that is capable of storing information for extended periods, from days to a lifetime.

Richard Atkinson

A psychologist known for his contributions to the study of memory and cognition, including the development of the multi-store model of memory.

Web Address

The unique identifier for a website or a web page on the internet, also known as URL (Uniform Resource Locator).