Multiple Choice
The Taylor rule relates
A) the nominal Fed funds rate to inflation over the past year and the deviation of output from full-employment output.
B) the growth rate of the monetary base to the growth rate of nominal GDP and the change in velocity over the past year.
C) the nominal Fed funds rate to the growth rate of nominal GDP and the change in velocity over the past year.
D) the growth rate of the monetary base to inflation over the past year and the deviation of output from full-employment output.
Correct Answer:
Verified
Correct Answer:
Verified
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