Business, 01.12.2020 16:50, Masielovebug

According to the Taylor rule, if inflation has risen by 6 percentage points above its target of 2 percent, the Fed should:. a. grow the money supply at a rate of 6% per year.
b. raise the real federal funds rate by 2 percentage points.
c. raise the real federal funds rate by 3 percentage poin.
d. raise the real federal funds rate by 6 percentage points.

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According to the Taylor rule, if inflation has risen by 6 percentage points above its target of 2 pe...