题目内容

Assume the central bank’s announced inflation target is 2%, output is 2% below the full-employment level, and the Taylor rule suggests that the central bank sets the nominal interest rate at 4.5%. What is most likely the current inflation rate?

A. 0.03
B. 0.036
C. 0.04
D. 0.045
E. 0.06

查看答案
更多问题

In the Taylor rule, if the inflation coefficient α is much larger than the output coefficient β, then the central bank

A. is mostly concerned with maintaining full-employment
B. will raise interest rates more aggressively when output declines than when inflation heats up
C. will lower interest rates more aggressively when output declines than when inflation heats up
D. is engaging in strict inflation targeting
E. none of the above

According to the Taylor rule, if the current inflation rate is 3.2%, output is 1% above the full-employment level, and the central bank’s announced inflation target is 2%, at what level should the central bank set the nominal interest rate?

A. 0.022
B. 0.033
C. 0.044
D. 0.058
E. 0.063

Assume the current inflation rate is 2.4% and output is at the full-employment level. If the central bank has set nominal interest rates at 5.6%, what is the central bank’s inflation target if it follows the Taylor rule?

A. 0.01
B. 0.02
C. 0.03
D. 0.04

Assume a central bank announced a zero percent inflation target. If the current inflation rate is 2.4%, and output is at the full-employment level, at what level should the central bank set the nominal interest rate according to the Taylor rule?

A. 0.012
B. 0.018
C. 0.024
D. 0.03
E. 0.036

答案查题题库