According to the Taylor Rule, if the real federal funds rate equals 2%, the inflation target rate

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According to the Taylor Rule, if the real federal funds rate equals 2%, the inflation target rate is 2%, the actual inflation rate is 4%, and the economy is at the full employment level of output, what should the federal funds target be?

a. 2%

b. 3%

c. 4%

d. 7%

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Money, Banking, Financial Markets and Institutions

ISBN: 978-0538748575

1st edition

Authors: Michael Brandl

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Question Posted: Jun 21, 2019 07:30 AM

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According to the Taylor Rule, if the real federal funds rate equals 2%, the inflation target rate

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Money, Banking, Financial Markets and Institutions

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