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Title: Taylor RulesSuppose the target rate of inflation is 3%, the current inflation rate is 7%, the ... Post by: rsteel on Nov 10, 2022 Taylor Rules
Suppose the target rate of inflation is 3%, the current inflation rate is 7%, the equilibrium real federal funds rate is 1%, and real GDP is 1% above potential real GDP. If the weights for both the output gap and the inflation gap are 1/2, then according to the Taylor rule the federal funds target rate equals ________. (Round to the nearest tenth when appropriate.) ▸ 6% ▸ 4% ▸ 12% ▸ 10.5% Title: Taylor RulesSuppose the target rate of inflation is 3%, the current inflation rate is 7%, the ... Post by: tkane127 on Nov 10, 2022 Content hidden
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