According to the Taylor Principle, Question 6 options: The Fed should increase interest rates by 2 times the GDP gap deficit The Fed should adjust the Fed Funds Rate by 1.5 times the inflation gap The Fed should adjust the Fed funds Rate by 1.5* the GDP gap The Fed should decrease interest rates by 0.5 times the inflation gap

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According to the Taylor Principle,   Question 6 options:  The Fed should increase interest rates by 2 times the GDP gap deficit  The Fed should adjust the Fed Funds Rate by 1.5 times the inflation gap  The Fed should adjust the Fed funds Rate by 1.5* the GDP gap  The Fed should decrease interest rates by 0.5 times the inflation gap

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