Which Terms in the Equation for Taylor Rule Can Be

question 18

Multiple Choice

Which terms in the equation for Taylor rule can be influenced by the government through monetary policy?

• A)Inflation gap and interest-rate spread
• B)Unemployment gap and interest-rate spread
• C)Interest-rate spread and unemployment gap
• D)Output gap and inflation gap

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Definitions:

Synaptic Pruning

The process by which extra neurons and synaptic connections are eliminated to increase the efficiency of neuronal transmissions.

Myelinated

Refers to nerve fibers that are coated with myelin, a substance that speeds up the transmission of nerve impulses.

Cerebrum

The largest part of the brain, responsible for higher brain functions such as thought, action, and sensory processing.

Genetic Link

A connection between certain genes and specific traits or diseases.