Assuming the Simple Taylor Rule for Dictating the Federal Funds

question 90

Multiple Choice

Assuming the simple Taylor rule for dictating the federal funds rate,when the actual federal funds rate deviates from the suggested rate,it can be explained by:

• A)bad monetary policy.
• B)discretionary fiscal policy.
• C)discretionary monetary policy.
• D)poorly informed monetary policy.
• E)poorly informed fiscal policy.

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Definitions:

Linear Programming

A mathematical modeling technique used to achieve the best outcome in a mathematical model whose requirements are represented by linear relationships.

Objective Function

A mathematical function that represents the goal or objective of an optimization problem, typically to maximize or minimize some quantity.

Linear Equation

An algebraic equation that represents a straight line, typically in the form y = mx + c, where m is the slope and c is the y-intercept.

Graphical Method

A visual representation technique, often used in operations research and management to solve linear programming problems and analyze data.