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

question 51

Multiple Choice

If the inflation rate target is 2%,the current inflation rate is 1%,and the output gap is minus 2%,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:

Pulse Oximetry

A non-invasive test that measures the oxygen saturation level in the blood by using a device that clips onto a fingertip.

Lavage

A medical procedure involving the washing out of an organ or body cavity, such as the stomach, to remove toxins or foreign substances.

Infection

The invasion and multiplication of microorganisms like bacteria, viruses, and fungi in body tissues, causing illness or disease.