ACCORDING TO THE TAYLOR RULE, THE FED SHOULD RAISE THE FEDERAL FU...

124) - 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
124) According to the Taylor rule, the Fed should raise the federal funds interest rate when inflation _____ the Fed’s inflation target or when real GDP _____ the Fed’s output target. (a) rises above; drops below (b) drops below; drops below (c) rises above; rises above (d) drops below; rises above Answer: C Question Status: Revised