Question: If the Fed's policy reaction function equals ( r = 0 . 0 2 + pi ) , where ( r

If the Fed's policy reaction function equals \( r=0.02+\pi \), where \( r \) is the real interest rate and \(\pi \) is the inflation rate, when the inflation rate is at the current target of 2 percent, then the real interest rate will be set at
Multiple Choice
2.02 percent.
6 percent.
0 percent.
4 percent.
If the Fed's policy reaction function equals \ (

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