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:

Diffusion

The process by which an innovation is communicated through certain channels over time among the members of a social system.

Creativity

The ability to produce original and valuable ideas or solutions by thinking outside conventional boundaries or patterns.

Motivation

The processes that account for an individual's intensity, direction, and persistence of effort toward attaining a goal.

Product Innovations

The introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses.