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

question 42

Multiple Choice

If the inflation rate target is 2%,the current inflation rate is 3%,and the output gap is 2%,then according to the Taylor rule,the nominal federal funds rate should be ________ percent.

• A)4.5
• B)7
• C)6.5
• D)5.5
• E)none of the above

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Definitions:

Social Stratification

A system by which society ranks categories of people in a hierarchy based on factors like wealth, income, race, education, and power.

Hierarchical Ranking

A system where entities are arranged in a graded order from lowest to highest based on certain criteria.

Subjective Assessments

Evaluations based on personal feelings, tastes, or opinions rather than on external facts or evidence.

Dominant Ideology

The set of beliefs, values, and norms that are most widely shared within a society, often reinforcing the current social power structure.