According to the Taylor Rule, the Overnight Interest Rate Should

question 49

Multiple Choice

According to the Taylor rule, the overnight interest rate should be set at ________.

• A)π + iₒᵣ - 0.5(π - π*) - 0.5(y - y)
• B)π - iₒᵣ - 0.5(π - π*) - 0.5(y - y)
• C)r + π
• D)r - π
• E)none of the above

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