Between Approximately 2001 and 2006,the Taylor Rule Predicted Federal Funds

Multiple Choice

Between approximately 2001 and 2006,the Taylor rule predicted federal funds rate:

A) was greater than the actual federal funds rate.
B) was less than the actual federal funds rate.
C) was statistically equal to the actual federal funds rate.
D) The Taylor rule is used to predict the natural rate of unemployment.
E) was negatively correlated with the federal funds rate.