5. 1+2+2-5 points Assume inflation rate is 0%, the target of inflation is 2%, the economy is facing a recessionary output gap of 2.5%. The equilibrium overnight rate is 2%. a. Use the Taylor rule suggest the appropriate target for the overnight interest rate. b. What is the significance of the weight for the inflation gap in the Taylor Rule. . If conventional monetary policy can no longer be used explain how Credit Easing be used to case financial frictions and credit crunch in such an economy