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ericayi ericayi
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A year ago
Taylor Rules

Suppose the target rate of inflation is 6%, the current inflation rate is 1%, the equilibrium real federal funds rate is 2%, and real GDP is 4% below 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.)

▸ 2.5%

▸ 5%

▸ -1.5%

▸ -3%
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
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munjojmunjoj
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A year ago
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ericayi Author
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A year ago
Good timing, thanks!
mmmm_dat_userna
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Yesterday
Correct Slight Smile TY
ky
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2 hours ago
This site is awesome
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