Use the following Taylor rule to calculate what would happen to the real interest rate if actual
Question:
Target federal funds rate = 2 + current inflation + ½(inflation gap) +½(output gap)
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Target federal funds rate 2 current inflation inflation gap outp...View the full answer
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Related Book For 
Money Banking and Financial Markets
ISBN: 978-0078021749
4th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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