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Which of the Following Equations Most Accurately Describes the Taylor

Question 4

Multiple Choice

Which of the following equations most accurately describes the Taylor rule?


A) πt = mt – yt + vt
B) mt = 0.04 + 2(ut – 0.052)
C) mt = πt + 0.5(πt – π*t) + 0.5(Yt –Y*t)
D) it = 2 + πt + 0.5(πt – π*t) + 0.5[100(Yt –Y*t) /Y*t]
E) it = 2 + 0.5[(πt – π*t) /πt] + 0.5[(Yt –Y*t) /Y*t]

Correct Answer:

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