Multiple Choice
According to the Taylor rule,which of the following will lead to a higher nominal federal funds rate?
A) an increase in inflation
B) a positive output gap
C) a positive inflation gap
D) all of the above
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q49: Which of the following is a primary
Q50: Macroeconomic Shocks & Policies <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5036/.jpg" alt="Macroeconomic
Q51: If the inflation rate target is 2%,the
Q52: If the economy is in a long-run
Q53: The time it takes for policymakers to
Q55: An increase in financial frictions results in
Q56: An emphasis on inflation stability is compatible
Q57: When the credit spread rises,an effective policy
Q58: When an aggregate demand shock hits the
Q59: Figure 13.1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5036/.jpg" alt="Figure 13.1