In your calculations, the inflation gap is negative if the current inflation rate is below the...
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In your calculations, the inflation gap is negative if the current inflation rate is below the target inflation rate. How does the targeted federal funds rate calculated using the Taylor rule compare to the actual federal funds rate of 0% to 0.25%? OA. This Taylor rule federal funds rate target fits within the Fed's actual target range. OB. This Taylor rule federal funds rate target is lower than the Fed's actual target range. C. This Taylor rule federal funds rate target is higher than the Fed's actual target range. In your calculations, the inflation gap is negative if the current inflation rate is below the target inflation rate. How does the targeted federal funds rate calculated using the Taylor rule compare to the actual federal funds rate of 0% to 0.25%? OA. This Taylor rule federal funds rate target fits within the Fed's actual target range. OB. This Taylor rule federal funds rate target is lower than the Fed's actual target range. C. This Taylor rule federal funds rate target is higher than the Fed's actual target range.
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