The key policy target in the Taylor rule is the:

A. money supply.
B. federal funds interest rate.
C. average tax rate.
D. full-employment budget.

B. federal funds interest rate.

Economics

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If policymakers are expected to increase the money supply, Monetarists argue that there is __________ effect. There is __________ effect that raises prices when the money supply actually increases

A) a small liquidity; an income B) no; an income C) a small income; a liquidity D) no; a liquidity

Economics

Most people buy insurance because they

a. are risk lovers b. enjoy the gamble c. are risk neutral d. want to avoid gambles

Economics