According to the Taylor rule, which of the following will lead to the largest increase in the nominal federal funds rate?

A) a two percentage point increase in the target inflation rate
B) a one percentage point decrease in the target inflation rate
C) a one percentage point increase in output
D) a two percentage point decrease in output
E) a one percentage point increase in the inflation rate


E

Economics

You might also like to view...

The earliest and simplest form of international business is _____.

a. mercantilism b. government c. trade d. tariffs e. none of the above

Economics

Total output includes all of the following except:

A. Household consumption. B. Business investment. C. Imports. D. Government services.

Economics

Prices are a critical component of the market system

Indicate whether the statement is true or false

Economics

Exhibit 8-12 Marginal revenue and cost per unit curves As shown in Exhibit 8-12, the price that will yield zero economic profit is:

A. OA. B. OB. C. OC. D. OD.

Economics