Question

A______interst rates when the out gap and the (B) bank applies a Taylar___rule in the management of it's monetary policy

Answer 1

The complete statement will be, “A lower interest rates when the out gap and the (B) bank applies a Taylar rule between the actual inflation and the bank’s target inflation rate in the management of its monetary policy”. This will show the exact rate in terms of the monetary policy of the rule.