NAIMMCQ Economics 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.

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.

Economics

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

NAIMMCQ

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.

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.

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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.

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.