Multiple Choice
If there is a 2 percent unemployment gap and the inflation rate is 1 percent, then according to the Taylor rule, the Fed should make their targeted interest rate
A) decrease to 0.5 percent.
B) decrease to 3 percent.
C) decrease to 1.5 percent.
D) decrease to 1 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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