Which of the following equations represent Taylor Rule?

A) rFF = rFF* - a(p – p*) - b
B) rFF = rFF* + a(p – p*) + b
C) rFF = rFF* - a(p – p*) + b
D) rFF = rFF* + a(p + p*) + b

B

Economics

You might also like to view...

Which of the following is an economic explanation for the "beauty premium"?

a. Employers pay very attractive women less than average-looking women because they believe them to be less intelligent. b. Employers pay above-average-looking men more than above-average-looking women. c. Employers pay above-average-looking women more than average-looking women because customers prefer to deal with better-looking women. d. Employers pay above-average-looking men more because they signal to the market that they are willing to spend more money on personal grooming, a sign of wealth and stability.

Economics

Some countries intentionally aim for a low standard of living, high rates of unemployment and inflation, or an unsustainable trade imbalance within their economies.

Select whether the statement is true or false. A. True B. False

Economics