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Which of the following is NOT accurate with respect to the Taylor rule? We could replace the FOMC with the Taylor rule and have no
Which of the following is NOT accurate with respect to the Taylor rule?
We could replace the FOMC with the Taylor rule and have no difference in policy.
The rate predicted by the Taylor rule is generally far from the actual target federal funds rate.
The rate predicted by the Taylor rule is generally close to the actual target federal funds rate.
The Taylor rule is particularly good at handling sudden shocks to the economy.
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