Business
Business, 17.12.2019 13:31, swagbruh6790

If potential output declines while actual output remains unchanged, what does the taylor rule imply that policymakers should do to the fed funds rate? based on this scenario, policymakers should increase the fed funds rate because:

a. the output gap would decrease. nbsp

b. the output gap would increase. nbsp

c. the rate of actual output growth would decline. nbsp

d. changes in potential output nbsp do not influence the fed funds rate.

answer
Answers: 2

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If potential output declines while actual output remains unchanged, what does the taylor rule imply...

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