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 maintain real output approximately at potential GDP.
B) the Fed desires to maintain unemployment at its natural rate.
C) the Fed desires to maintain inflation at its target level.
D) the Fed desires to maintain interest rates at their target level.
E) all of the above statements are true.