According to the taylor rule, the fed should: a. lower the fed funds rate by 2% if inflation rises 1% above its target of 1% b. raise the fed funds rate by 2% if inflation rises 1% above its target of 1% c. lower the fed funds rate by 0.5% if inflation rises 1% above its target of 2% d. raise the fed funds rate by 0.5% if inflation rises 1% above its target of 2%

correct option is D raise the fed funds rate by 0.5% if inflation rises 1% above its target of 2%

Explanation:

solution

Taylor Rule is invented in 1992 and it is interest rate forecasting model

As the product of John Taylor Rule is the 3 number

and Taylor rule is that when GDP is equal to potential GDP and inflation rate is at its target rate of 2%

and the federal funds target rate should be 4%

so we can say here correct option is D raise the fed funds rate by 0.5% if inflation rises 1% above its target of 2%

c. taught scientists many new things about the earth, but not other planets.

explanation:

one way archaeology us understand the past is through the material objects it finds, allowing us to know what was being used, and when. for example a dig recently found a flute, believed to be the oldest musical instrument found to date.

i hope this