Question: Problem 1 5 - 5 Suppose that the inflation rate is 2 percent, the overnight lending rate is 4 percent, and real GDP falls 2

Problem 15-5
Suppose that the inflation rate is 2 percent, the overnight lending rate is 4 percent, and real GDP falls 2 percent below potential GDP. According to the Taylor Rule, in what direction and by how much should the Bank of Canada change the real overnight lending rate?
the real overnight lending rate by %
Problem 1 5 - 5 Suppose that the inflation rate

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