According to the Taylor Rule,which of the Following Will Lead

question 61

Multiple Choice

According to the Taylor rule,which of the following will lead to the largest increase in the nominal federal funds rate?

• A)a two percentage point increase in the target inflation rate
• B)a one percentage point decrease in the target inflation rate
• C)a one percentage point increase in output
• D)a two percentage point decrease in output
• E)a one percentage point increase in the inflation rate

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