If the Inflation Rate Target Is 2%,the Current Inflation Rate

question 20

Multiple Choice

If the inflation rate target is 2%,the current inflation rate is also 2%,and the output gap is zero,then according to the Taylor rule,the nominal federal funds rate should be ________ percent.

• A)zero
• B)two
• C)four
• D)three
• E)none of the above

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Definitions:

Fairly and Objectively

In a manner that is impartial, just, and based on facts, ensuring equal and unbiased consideration.

Organizations

Structured groups of people working together towards common goals or objectives, often within a formally established framework.

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The practice of making human resource decisions based on the best available, scientifically gathered evidence.

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The process of ensuring employees' activities and outputs meet an organization's goals through setting expectations, monitoring progress, and evaluating outcomes.