Business, 31.03.2021 01:20 erictallen2005
Suppose that the equilibrium real federal funds rate is 4% and the target rate of inflation is 1%. Use the following information and the Taylor rule to calculate the federal funds rate​ target:
Current inflation rate​ = 4%
Potential real GDP​ = ​$14.72 trillion
Real GDP​ = ​$14.81 trillion
The federal funds target rate is​%.​
Answers: 1
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Suppose that the equilibrium real federal funds rate is 4% and the target rate of inflation is 1%. U...
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