If the Inflation Rate Target Is 2%,the Current Inflation Rate

question 20

Multiple Choice

If the inflation rate target is 2%,the current inflation rate is also 2%,and the output gap is zero,then according to the Taylor rule,the nominal federal funds rate should be ________ percent.

• A)zero
• B)two
• C)four
• D)three
• E)none of the above

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Definitions:

Internal Locus

The belief that one controls their own destiny and outcomes are the result of one's own efforts and characteristics.

Cost Estimator

A professional or tool responsible for predicting the expense associated with projects, products, or services before they are executed or produced.

Failure Analysis

The systematic examination of failed components or systems to determine the underlying causes of failure and prevent future occurrences.

Developing Resilience

The process of building the capacity to recover quickly from difficulties or adapt in the face of adversity.