According to the Taylor Rule,if Output Is Above Its Full-Employment

question 87

Multiple Choice

According to the Taylor rule,if output is above its full-employment level and inflation is less than 2%

• A)the Fed should raise the Fed funds rate above 4%.
• B)the Fed should reduce the Fed funds rate below 4%.
• C)the Fed should make the Fed funds rate exactly 4%.
• D)what the Fed should do is ambiguous.

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Definitions:

Extinction

The process by which a species, genus, or family of organisms becomes permanently lost or dies out.

Therapist

A professional trained in methods of psychological or physical rehabilitation, providing treatment for emotional, behavioral, and mental disorders.

Operant Behavior

Behavior that is controlled or influenced by its consequences, such as rewards or punishments.

Respondent Behavior

A type of reaction in behaviorism where an organism responds to a stimulus in a reflexive or automatic manner.