USING TAYLOR’S RULE, WHEN THE EQUILIBRIUM REAL FEDERAL FUNDS RATE...

128) - TEST BANK CHAPTER 18 CONDUCT OF MONETARY POLICY GOALS AND TARGETS TÀI CHÍNH TIỀN TỆ
TEST BANK CHAPTER 18 CONDUCT OF MONETARY POLICY GOALS AND TARGETS TÀI CHÍNH TIỀN TỆ
128) Using Taylor’s rule, when the equilibrium real federal funds rate is 2 percent, the positive output gap is 2 percent, the target inflation rate is 1 percent, and the actual inflation rate is 2 percent, the nominal federal funds rate should be (a) 5 percent. (b) 5.5 percent. (c) 6 percent. (d) 6.5 percent. (e) 7 percent. Answer: B Question Status: New