o commercial banks increase their lending to the Fed QUESTION 4 The Taylor rule

Question

o commercial banks increase their lending to the Fed QUESTION 4 The Taylor rule is an example of an instrument rule ocused on the federal funds rate e a targeting rule focused on the monetary base an instrument rule based on M1 a targeting rule focused on the federal funds rate. an instrument tule focused on the monetary base QUESTION 5 The Feds policy is determined by the Federal Open Market Committese Exscutive Council to the Govemor Regional Faderal Reeerve Banks Board of Governors Federal Monetary Policy Committee Cliok Save ahd Submit to tarc end sb Click Sate s ansinsirs to edive ol

Explanation / Answer

4) A Taylor rule is an example of an instrumental rule focused on the federal fund rate. The first option is correct.

5) The FED's policy is determined by Federal open market committee. The FOMC determines the monetary policy. The first option is correct.

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