Using the Taylor Rule,if the Current Inflation Rate Equals the Target

question 15

Multiple Choice

Using the Taylor rule,if the current inflation rate equals the target inflation rate and real GDP equals potential GDP,then the federal funds target rate equals the

• A)current discount rate.
• B)current inflation rate.
• C)real equilibrium federal funds rate.
• D)current inflation rate plus the real equilibrium federal funds rate.

---

Definitions:

Screwball Comedies

A subgenre of the comedy film that became popular during the Great Depression, known for fast-paced repartee, farcical situations, and often a plot that revolved around romance or courtship.

Preston Sturges

American playwright, screenwriter, and film director, known for his contributions to the comedy genre in the golden era of Hollywood.

Millionaire Hollywood

Refers to the influential and wealthy individuals in the Hollywood film industry, encompassing actors, directors, producers, and executives.

Sullivan's Travels

A classic American film directed by Preston Sturges, known for its mix of comedy and social commentary on the importance of laughter during times of hardship.