Skip to main content
Macroeconomics
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Back
Taylor Rule
Download worksheet
Problem 1
Problem 2
Problem 3
Problem 4
Problem 5
Problem 6
Problem 7
Problem 8
Taylor Rule
Download worksheet
Practice
Summary
Previous
7 of 8
Next
19. Monetary Policy / Taylor Rule / Problem 7
Problem 7
What is the main purpose of the Taylor Rule in monetary policy?
A
To provide a guideline for setting the Federal Funds Rate based on economic conditions.
B
To determine the exact Federal Funds Rate used by the Federal Reserve.
C
To set the Federal Funds Rate based on political considerations.
D
To eliminate the need for the Federal Reserve's discretion in setting rates.
AI tutor
0
Show Answer