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According to the Taylor rule, what is the federal funds target rate under the followingconditions? follows Equilibrium real federal funds rate equals 3 3% follows

According to the Taylor rule, what is the federal funds target rate under the followingconditions?

follows

Equilibrium real federal funds rate equals 3

3%

follows

Target rate of inflation equals 3

3%

follows

Current inflation rate equals 2

2%

follows

Real GDP is 2

2% below potential real GDP

The federal funds target rate equals _______?

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