Suppose Bank of Canada's target for inflation is 2 percent. If deviation of output from full-employment...

 

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Suppose Bank of Canada's target for inflation is 2 percent. If deviation of output from full-employment output is 1 percent, and the rate of inflation over the previous four quarters is 4 percent, what overnight interest rate the Bank of Canada should choose if it follows the Taylor rule? O a. 7.5 percent O b. O c. 9.5 percent Od. 5.7 percent 4 percent Suppose Bank of Canada's target for inflation is 2 percent. If deviation of output from full-employment output is 1 percent, and the rate of inflation over the previous four quarters is 4 percent, what overnight interest rate the Bank of Canada should choose if it follows the Taylor rule? O a. 7.5 percent O b. O c. 9.5 percent Od. 5.7 percent 4 percent

Answer rating: 100% (QA)

The correct answer is option a 75 percent Explanation Accordi... View the full answer