Which of the Following Is NOT a Basis for the Taylor-Rule

question 24

Multiple Choice

Which of the following is NOT a basis for the Taylor-rule guideline for how the Federal Reserve should set its target value for the federal funds rate?

• A) an estimated long-run real interest rate
• B) the current deviation of the actual inflation rate from the Fed's inflation objective
• C) the present deviation of the actual unemployment rate from the Fed's unemployment objective
• D) the gap between actual real GDP and a measure of potential real GDP

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Definitions:

Frequency Distribution

An overview of all distinct values in some variable and the number of times they occur.

Range

In statistics, range refers to the difference between the highest and lowest values in a data set.

Class Intervals

The range of values into which data points in a dataset are grouped for the purpose of creating a frequency distribution.

Frequency Distribution

A statistical representation showing the number of times each value appears in a dataset, often visualized as a table or graph.