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D Question 3 4 pts Suppose that inflation is 2%, the Federal funds rate is 4%, and inflation rises 3%. According to the Taylor Rule,

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D Question 3 4 pts Suppose that inflation is 2%, the Federal funds rate is 4%, and inflation rises 3%. According to the Taylor Rule, what should the Federal Funds target rate be? O 4% O 5% O 5.5% O 3.5% D Question 4 4 pts The government wants to enact discretionary fiscal policy to reduce inflation. Which of the following will shift the AD curve to the left? O Decreasing household income taxes. O Decreasing government spending on education. O Sending stimulus payments directly to households. O A decrease in stock market investments

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