The Taylor Rule Was Designed to Provide a Measure of

question 26

Multiple Choice

The Taylor rule was designed to provide a measure of

• A)the real interest rate.
• B)the consistency of monetary policy with price stability and full employment.
• C)the inflation rate that will minimize the rate of unemployment.
• D)the growth rate of excess reserves available to commercial banks.

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Definitions:

George W. Bush

The 43rd President of the United States, who served from 2001 to 2009, known for his response to the 9/11 attacks and initiating the Iraq War.

Barack Obama

The 44th President of the United States, serving two terms from 2009 to 2017, and the first African American to hold the office.

Macropolicy Goals

The primary, broad objectives of economic policy, such as price stability, full employment, and sustainable growth.

Conventional Fiscal Policy

Economic strategies employed by the government, involving taxation and government spending to influence the economy.