Each of the Following Statements About the Principles Underlying the Taylor

Multiple Choice

Each of the following statements about the principles underlying the Taylor rule is true except

A) the Fed desires to minimize inflation deviation from its target level.
B) the Fed desires to minimize real output fluctuations.
C) the Fed desires to minimize unemployment fluctuations.
D) the Fed desires to minimize interest rate fluctuations.
E) the Fed desires to minimize inflation fluctuations.