1.F. Explain the Taylor rule (be sure to provide the equation and tell what the central bank will do). If the central bank of a country has a policy of inflation targeting, what does this imply about the Taylor rule? Do the Fed and European Central Bank follow the Taylor rule? Explain your answers.
1.F. Explain the Taylor rule (be sure to provide the equation and tell what the central bank will do). If the central bank of a country has a policy of inflation targeting, what does this imply about the Taylor rule? Do the Fed and European Central Bank follow the Taylor rule? Explain your answers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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PLEASE ANSWER ALL AND INCLUDE DRAWN GRAPHS PLEASE.
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