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If the Current Rate of Inflation Is 1 Percent, Using

Question 78

Multiple Choice

If the current rate of inflation is 1 percent, using the values suggested by Professor Taylor, If the current rate of inflation is 1 percent, using the values suggested by Professor Taylor, , the Taylor rule predicts a federal funds rate of ________ percent. A) 0 B) 1.5 C) 1 D) 0.5 E) 3.5 , the Taylor rule predicts a federal funds rate of ________ percent.


A) 0
B) 1.5
C) 1
D) 0.5
E) 3.5

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