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

127) - 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
127) Using Taylor’s rule, when the equilibrium real federal funds rate is 2 percent, the output gap is negative 3 percent, the actual inflation rate is 1.5 percent, and the target inflation rate is 2 percent, the nominal federal funds rate should be (a) 1.25 percent. (b) 1.5 percent. (c) 1.75 percent. (d) 2.00 percent. (e) 2.25 percent Answer: C Question Status: New