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Business, 09.12.2021 02:20 Naysa150724

Suppose that inflation is 2 percent, the federal funds rate is 4 percent, and real GDP is 3.5 percent below potential GDP. According to the Taylor rule, in what direction and by how much should the Fed change the real federal funds rate? Instructions: Round your answer to 2 decimal places. (Click to select) the federal funds rate by percent.

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