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Business, 28.11.2019 04:31 SushiMagic

Assume that we currently have an inflation rate of 1%, a nominal federal funds rate of 2% and a real federal funds rate of 1%. now assume that we expect inflation to increase to 3 %. with a 3% inflation rate it is determined that the real federal funds rate should be 3%, so in accordance to the taylor rule, what should the nominal federal funds rate be changed to?

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