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Assume: the neutral real interest rate is 2% the expected rate of inflation = the target rate of inflation = 2% a recession hits the
Assume: the neutral real interest rate is 2% the expected rate of inflation = the target rate of inflation = 2% a recession hits the economy, causing output to be 0.75% below potential real GDP and causing the rate of inflation to be 1% Based on this information, the Fed's "ruleofthumb" predicts that the Fed's target for the real Federal Funds Rate is _____ %
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Business Statistics For Contemporary Decision Making
Authors: Ken Black
9th edition
978-1-119-3208, 9781119334781, 1119334780, 1119320895, 978-1119320890
