According to the Taylor Rule, When Real GDP Is Above

question 47

Multiple Choice

According to the Taylor rule, when real GDP is above its natural level, the nominal federal funds rate should be _____, and when inflation is below 2 percent, the nominal federal funds rate should be _____.

• A) raised; raised
• B) raised; lowered
• C) lowered; raised
• D) lowered; lowered

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Definitions:

Video Camera

An electronic device designed to capture and record moving images.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.

Bad Behavior

Actions that are considered inappropriate, disrespectful, or harmful in a social context.

Bad Person

A term used to describe someone who is deemed to have morally wrong, unethical, or harmful characteristics or behaviors.