According to the Taylor Rule, the Two MOST Important Factors

Multiple Choice

According to the Taylor rule, the two MOST important factors influencing the Federal Reserve's changing the federal funds rate are

A) an inflation rate different from the Fed's target and output different from potential GDP.
B) an inflation rate different from the Fed's target and increasing interest rates.
C) increasing interest rates and output different from potential GDP.
D) output different from potential GDP and unemployment rates different from full employment.