According to the Taylor Rule: If the Inflation Rate Is

question 167

Multiple Choice

According to the Taylor Rule: if the inflation rate is 2% and the GDP gap is 3%,what does the federal funds rate target equal?

• A) 9.5 percent
• B) 7.5 percent
• C) 5.5 percent
• D) 8.5 percent

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Definitions:

Maladaptive Pattern

Behavior patterns that negatively affect a person’s ability to function in daily life.

Rigid Behavior

A type of behavior characterized by an unwillingness or inability to change or adapt to new situations, ideas, or environments.

DSM

Diagnostic and Statistical Manual of Mental Disorders, a publication that categorizes and defines mental health disorders.

Psychological Professionals

Individuals with specialized training in the study of the mind and behavior, including psychologists, psychiatrists, and psychotherapists.