The Taylor Rule Accurately Predicted the Changes in the Federal

question 77

Multiple Choice

The Taylor rule accurately predicted the changes in the federal funds target during the period

• A)when Alan Greenspan was the chairman of the Federal Reserve Board.
• B)when Paul Volcker was the chairman of the Federal Reserve Board.
• C)when Arthur Burns was the chairman of the Federal Reserve Board.
• D)when William McChesney Martin was the chairman of the Federal Reserve Board.

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Definitions:

Inductive Reasoning

"Reasoning from specific observations to make generalizations."

Deductive Reasoning

Reasoning from a general case that is known to be true to a specific instance.

Abductive

A form of reasoning that begins with observations and seeks to find the simplest and most likely explanation.

Subgoaling

The process of breaking down a larger goal into smaller, more manageable objectives.