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If the coefficient for the output gap is set to zero in the Taylor rule, then the central bank: Multiple Choice engages in pure inflation
If the coefficient for the output gap is set to zero in the Taylor rule, then the central bank: Multiple Choice engages in pure inflation targeting. is concerned primarily with maintaining full employment. always sets interest rates 2% above its inflation target. will lower interest rates when output falls. is implicitly setting the output gap to zero
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Global Strategy
Authors: Mike W. Peng
5th Edition
0357512367, 978-0357512364
