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drdoombot drdoombot
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A year ago
According to the Taylor rule, for a given inflation rate, ________.

▸ every percentage point increase in the inflation rate increases the federal funds rate by 1.5 percentage points

▸ every percentage point increase in the nominal interest rate increases the federal funds rate by 1 percentage point

▸ if bank reserves double, the federal funds rate should double

▸ if nominal output doubles, the federal funds rate should double
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
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shanej399shanej399
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A year ago
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drdoombot Author
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A year ago
Thanks
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This helped my grade so much Perfect
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I appreciate what you did here, answered it right Smiling Face with Open Mouth
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