Using Taylor's Rule,when the Equilibrium Real Federal Funds Rate Is

question 45

Multiple Choice

Using Taylor's rule,when the equilibrium real federal funds rate is 3 percent,the positive output gap is 2 percent,the target inflation rate is 1 percent,and the actual inflation rate is 2 percent,the nominal federal funds rate target should be

• A)5 percent.
• B)5.5 percent.
• C)6 percent.
• D)6.5 percent.

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Definitions:

Venipuncture

The puncture of a vein; the insertion of a needle into a vein for the purpose of obtaining a blood sample or instilling a substance.

Clench Fist

The act of closing the hand tightly, often as a physical expression of stress or anger.

Capillary Blood Sample

A small sample of blood obtained from a capillary bed, usually by pricking the skin, useful for various medical tests.

Bruised

Describes an area of the skin that has turned dark or discolored due to injury causing bleeding under the skin.