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Which of the Following Equations, Discussed in the Text, Can it=rˉi _ { t } = \bar { r }

Question 57

Multiple Choice

Which of the following equations, discussed in the text, can be used to predict the federal funds rate?


A) it=rˉi _ { t } = \bar { r }
B) it=mˉ(πtπˉ) i _ { t } = \bar { m } \left( \pi _ { t } - \bar { \pi } \right)
C) it=rˉ+πˉ+mˉ(πtπˉ) i _ { t } = \bar { r } + \bar { \pi } + \bar { m } \left( \pi _ { t } - \bar { \pi } \right)
D) it=rˉ+πt+aˉi _ { t } = \bar { r } + \pi _ { t } + \bar { a }
E) None of these answers are correct.

Correct Answer:

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