Multiple Choice
Which of the following correctly explains the Taylor rule?
A) It links interest rates to short-term deviations in in?ation and output.
B) It maps the changes in actual and potential GDP over time.
C) It shows the trade-off between unemployment and in?ation.
D) It links the growth of money supply to changes in the price level.
Correct Answer:
Verified
Correct Answer:
Verified
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