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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