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Title: Suppose the equilibrium real federal funds rate is 5 percent, the target rate of inflation is 3 perc Post by: Tidy on Jun 22, 2015 Suppose the equilibrium real federal funds rate is 5 percent, the target rate of inflation is 3 percent, the current inflation rate is 5 percent, and real GDP is 4 percent above potential real GDP. If the weights for the inflation gap and the output gap are both 1/2, then according to the Taylor rule the federal funds target rate equals
A) 1 percent. B) 9 percent. C) 13 percent. D) 17 percent. Title: Re: Suppose the equilibrium real federal funds rate is 5 percent, the target rate of inflation is 3 Post by: Sydnie on Jul 5, 2015 Content hidden
Title: Re: Suppose the equilibrium real federal funds rate is 5 percent, the target rate of inflation is 3 perc Post by: Sydnie on Aug 31, 2015 I was confident with my answer, glad it was correct.
Oh, and thumbs-up are more than welcome :) |