If the Fed follows the Taylor rule and the economy goes into a recession, the Fed would
A. lower the federal funds rate.
B. reduce tax rates.
C. increase government expenditures.
D. None of the above answers are correct.
Answer:A
If the Fed follows the Taylor rule and the economy goes into a recession, the Fed would
A. lower the federal funds rate. B. reduce tax rates. C. increase government expenditures. D. None of the above answers are correct.