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vellojo vellojo
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7 years ago
Suppose the equilibrium real interest rate is 2 percent per year, inflation is 2.5 percent and the output gap is 1 percent.  Using the Taylor rule, what is the federal funds rate?
A) 3 percent
B) 5.5 percent
C) 3.5 percent
D) 5.25 percent
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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Studying economics @ Edinburgh U
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yaderayadera
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#1
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7 years ago
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vellojo Author
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#2
7 years ago
Checks out after I submitted my assignment Smiling Face with Open Mouth
Studying economics @ Edinburgh U
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