The Taylor Rule Predicted Federal Funds Rate (In the Text) $i _ { t } = 1 \% + 1.5 \pi _ { t } + 0.5 \tilde { Y } _ { t }$

question 8

Multiple Choice

The Taylor rule predicted federal funds rate (in the text) was derived from which of the following equations?

• A) \(i _ { t } = 1 \% + 1.5 \pi _ { t } + 0.5 \tilde { Y } _ { t }\)
• B) \(i _ { t } = 1 \% - 0.5 u _ { t }\)
• C) \(i _ { t } = \pi _ { t } + R _ { t }\)
• D) \(i _ { t } = \bar { a } - \bar { m } \tilde { Y }\)
• E) \(i _ { t } = \pi _ { t } + \tilde { Y } _ { t }\)

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