The Taylor Rule Is a Description of How the Central

Multiple Choice

The Taylor rule is a description of how the central bank's targeted real interest depends on the gap

A) between the current inflation rate and the central bank's targeted inflation rate.
B) between the current unemployment rate and the central bank's targeted unemployment rate.
C) between the current inflation rate and the central bank's targeted unemployment rate.
D) between the current exchange rate and the central bank's targeted exchange rate.