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

question 51

Multiple Choice

If the inflation rate target is 2%,the current inflation rate is 1%,and the output gap is minus 2%,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:

Fibrocartilage

A tough type of cartilage containing fibrous bundles of collagen, found in places like intervertebral discs and the knee.

Collagen Fibers

Structural proteins found in connective tissue, providing strength, durability, and elasticity to structures like skin, tendons, and ligaments.

Fibrocartilage

A type of cartilage that contains thick bundles of collagen fibers, providing support and rigidity to structures like intervertebral discs.

Pubic Bones

The pair of bones forming the anterior part of the pelvic girdle, meeting at the midline in a joint called the pubic symphysis.