Suppose the the equilibrium real federal funds rate is 4 percent and the target rate of inflation of 1 percent. use the following information and the taylor rule to calculate the federal funds rate target.
current inflation rate = 4 percent
potential real gdp = $14.72 trillion
real gdp = $14.81 trillion
the federal funds target rate is %
Answers: 3
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Suppose the the equilibrium real federal funds rate is 4 percent and the target rate of inflation of...
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