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:

Humans

Biological beings belonging to the species Homo sapiens, characterized by their advanced cognitive abilities and complex social structures.

Deliberate System

The Deliberate System refers to the cognitive process that is analytical, conscious, and rational, often requiring more time and effort than instinctive or automatic responses.

Automatic Systems

Systems that operate independently of human intervention, often relying on pre-set rules or algorithms to function.

Stereotyping

Assigning a fixed, generalized idea or identity to individuals based on their membership in a particular group, often leading to prejudgment.