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Basic Question 0 of 12
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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Edward Liu
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.