Question

What is the taylor​ rule?

a. it is a rule that links national debt to the annual budget deficit.

b. it is a rule that links the​ fed's target for​ long-term mortgage rates to economic variables such as the current inflation​ rate, real equilibrium federal funds​ rate, inflation gap and output gap.

c. it is a rule that links the​ fed's target for the federal funds rate to the current inflation​ rate, real equilibrium federal funds​ rate, inflation gap and output gap. your answer is correct.d. it is a rule that links the unemployment rate to the rate of inflation. what is the purpose of the taylor​ rule? the taylor rule is used to?

Answer 1

option C..it's used for guideline for how central banks.such as the federal reserve .should alter interests rate