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    Exam 17: Monetary Policy Targets and Goals
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    According to the Taylor Rule, If the Output Gap Rises
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According to the Taylor Rule, If the Output Gap Rises

Question 59

Question 59

Multiple Choice

According to the Taylor Rule, if the output gap rises by 1% and inflation rises by 2%, then the federal funds rate should rise by


A) 2.0%.
B) 2.5%.
C) 3.0%.
D) 3.5%.

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