Multiple Choice
According to the Taylor rule,if inflation rises 1 percent above a target rate of 2 percent,the Fed should raise the federal funds rate,relative to the current rate of inflation,by:
A) 0.5 percentage point.
B) 1 percentage point.
C) 1.5 percentage points.
D) 2 percentage points.
Correct Answer:
Verified
Correct Answer:
Verified
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