Between Approximately 2001 and 2006,the Taylor Rule Predicted Federal Funds

question 64

Multiple Choice

Between approximately 2001 and 2006,the Taylor rule predicted federal funds rate:

• A)was greater than the actual federal funds rate.
• B)was less than the actual federal funds rate.
• C)was statistically equal to the actual federal funds rate.
• D)The Taylor rule is used to predict the natural rate of unemployment.
• E)was negatively correlated with the federal funds rate.

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