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

question 76

Multiple Choice

Using the Taylor rule,if the current inflation rate equals the target inflation rate and real GDP is greater than potential GDP,then the federal funds target rate ________ the sum of the current inflation rate plus the real equilibrium federal funds rate.

• A)will be greater than
• B)will be less than
• C)will be the same as
• D)may be greater than or less than

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Definitions:

Authority

The power or right assigned to an individual or organization to make decisions, give orders, and enforce obedience.

Sense Of Mission

A strong feeling of having a specific and important purpose or duty to fulfill.

Goals

Objectives or desired outcomes that an individual or organization aims to achieve within a specific timeframe.

Leadership

The act of guiding or influencing others towards the achievement of goals, characterized by inspiration, vision, and the ability to direct.