The Taylor Rule Predicted Federal Funds Rate (In the Text) $i _ { t } = 1 \% + 1.5 \pi _ { t } + 0.5 \tilde { Y } _ { t }$

Multiple Choice

The Taylor rule predicted federal funds rate (in the text) was derived from which of the following equations?

A) $i _ { t } = 1 \% + 1.5 \pi _ { t } + 0.5 \tilde { Y } _ { t }$
B) $i _ { t } = 1 \% - 0.5 u _ { t }$
C) $i _ { t } = \pi _ { t } + R _ { t }$
D) $i _ { t } = \bar { a } - \bar { m } \tilde { Y }$
E) $i _ { t } = \pi _ { t } + \tilde { Y } _ { t }$