b$.$ Let $\frac{?}{\text{b}\text{a}\text{r}}(r)=2\%\frac{,}{b}ar(m)=\frac{1}{2}$ and $=2\%.$ Write down the Taylor policy rule presented in class with these parameter values.

$.$

e$.$ The inflation rate $$ is $2\mathrm{.}7\%$ and the cylical unemployment rate $(u-u^n)$ is estimated to be $-0\mathrm{.}3\%.$ The Taylor policy rule in part d prescribes an effective federal funds rate of

f$.$ Using your results in parts $a,c$ and e $,$ is the stance of U$.$S$.$ monetary too loose or too tight? Explain why briefly.

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