(22) Which of the following is NOT an advantage of inflation targeting? A) reduc
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(22) Which of the following is NOT an advantage of inflation targeting? A) reduction of the time-inconsistency problem B) increased monetary policy transparency C) There D) consistency with democratic principles is an immediate signal on the achievement of the target. (23) Using Taylor's rule, when the equilibrium real federal funds rate is 3 percent, the positive output gap is 2 percent, the target inflation rate is 1 percent, and the actual inflation rate is 2 percent, the nominal federal funds rate target should b A) 6.5 percent. B) 6 percent. C) 5.5 percent D) 5 percent. (24) When it comes to choosing a policy instrument, both the rate and aggregates are measured accurately and are available daily with almost no A) three-month T-bill; monetary B) three-month T-bill; reserve C) federal funds; monetary D) federal funds; reserve delayExplanation / Answer
22. C)There is an immediate signal on the achievement of the target.
23.6.5 percent.
3+2+(2-1)/2+2/2
24) federal funds; reserve.
When it comes to choosing an policy instrument, both the ___federal funds ___ rate and ___reserve___ aggregates are measured accurately and are available daily with almost no delay.
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