Which of the Following Describes the Relationship Between the Actual

question 125

Multiple Choice

Which of the following describes the relationship between the actual federal funds rate and that suggested by Taylor's rule following the recovery from the 2001 recession?

• A) The federal funds rate was above that suggested by Taylor's rule.
• B) The federal funds rate was below that suggested by Taylor's rule.
• C) The federal funds rate was about equal to that suggested by Taylor's rule.
• D) There was not a clear relationship between the federal funds rate and that suggested by Taylor's rule.