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Compute the interest rate under the following Taylor rule conditions: r* = 0.01 Output (Y) equals 21 Target Output (Y*) equals 20 Inflation equals 0.03

Compute the interest rate under the following Taylor rule conditions: r* = 0.01 Output (Y) equals 21 Target Output (Y*) equals 20 Inflation equals 0.03 Target inflation equals 0.02 a1 = 1.0 a2 = 1.0

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