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Basic Question 2 of 10
The Taylor rule suggests to ______
B. put a larger weight on output than on inflation.
C. put equal weights on inflation and output.
A. put a larger weight on inflation than on output.
B. put a larger weight on output than on inflation.
C. put equal weights on inflation and output.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain how the phase of the business cycle affects policy and short-term interest rates, the slope of the term structure of interest rates, and the relative performance of bonds of differing maturities;
describe the factors that affect yield spreads between non-inflation-adjusted and inflation-indexed bonds;
CFA® 2025 Level II Curriculum, Volume 6, Module 37.