An Equation That Relates the Interest Rate to the Output

question 12

Multiple Choice

An equation that relates the interest rate to the output gap and the inflation rate is

• A)the Phillips relation.
• B)the Sharpe ratio.
• C)Okun's law.
• D)the Taylor rule.

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Definitions:

SUTA Tax Rate

The state-level tax rate applied to employers to fund state unemployment benefits, varying by state and employer's history with unemployment claims.