John Taylor's Rule for Setting the Federal Funds Rate Proposes

question 99

Multiple Choice

John Taylor's rule for setting the federal funds rate proposes increasing the nominal federal funds rate as inflation _____ and the GDP gap _____.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

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Definitions:

Verbal Skills

The ability to express ideas effectively in spoken or written form and to understand information received verbally.

Personality Traits

Enduring characteristics or qualities that define an individual's patterns of thought, feeling, and behavior.

Talkativeness

The quality of being inclined to engage in conversation or to talk a great deal.

Sex Drive

The biological compulsion towards sexual activity and behaviors.