The Taylor rule (where a and b are positive parameters) is represented by:
A) i = i* + a(n* - n ) - b(un - u) .
B) i = i* + a(n - n*) - b(un - u) .
C) i = i* + a(n - n*) - b(u - un) .
D) i = i* + a(n* - n ) + b(u - un) .
E) i = i* + a(n - n*) + b(u - un) .
Correct Answer:
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