Which Equation Best Represents the Taylor Rule

question 12

Multiple Choice

Which equation best represents the Taylor rule?

• A)i = r* + ?^T + {w₁ × [(Y ? Y*)/Y*] × 100} + [w₂ × (? ? ?^T)]
• B)i = r* + ? + {w₁ × [(Y ? Y*)/Y*] × 100} + [w₂ × (? ? ?^T)]
• C)i = r + ?^T + {w₁ × [(Y ? Y*)/Y*] × 100} + [w₂ × (? ? ?^T)]
• D)i = r + ? + {w₁ × [(Y ? Y*)/Y*] × 100} + (w₂ × ?)

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Definitions:

FIFO

An inventory valuation method that assumes the first items purchased are the first items sold, standing for First-In, First-Out.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are recorded as sold first.

LIFO

"Last In, First Out," an inventory valuation method where the last items to be added to inventory are the first ones used or sold.

FIFO

An inventory valuation method where the first items purchased or produced are the first ones sold, affecting the costs of goods sold and ending inventory.