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srsbiz srsbiz
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A year ago
If the federal funds rate is set by the Taylor rule and the output gap increases by 5 percentage points, everything else remaining unchanged, the federal funds rate should ________.

▸ decrease by 5 percentage points

▸ increase by 5 percentage points

▸ decrease by 2.5 percentage points

▸ increase by 2.5 percentage points
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
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itsbreckitsbreck
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A year ago
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