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spacemanspliff spacemanspliff
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Suppose the inflation rate target is zero and the long-run federal funds target is also zero. If the inflation rate is 4 percent and the output gap is ‒2 percent, the federal funds rate set by the Taylor rule is ________.

▸ 8 percent

▸ 6 percent

▸ 2 percent

▸ 5 percent
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Macroeconomics

Macroeconomics


Edition: 3rd
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eggr0lleggr0ll
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