The Taylor Rule Is: 

question 28

Multiple Choice

 The Taylor rule is: ?

• A) the monetary policy setting formula followed explicitly by the FOMC.?
• B) an approximation that seeks to explain how the FOMC sets their target.?
• C) an explicit tool used by the ECB but not the Fed.?
• D) a rule adopted by Congress to make the Fed's monetary policy more accountable to the public.

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Definitions:

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