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Employment, Inflation, and Interest Rates: Inflation: Taylor Rule Assume the following: - The neutral rate of interest is 3% - Actual real GDP growth is

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Employment, Inflation, and Interest Rates: Inflation: Taylor Rule Assume the following: - The neutral rate of interest is 3% - Actual real GDP growth is 3.5% while trend growth is 2.5% - Actual inflation is 5% whereas the target inflation is 2.0% If the Taylor Rule is followed, what should be the optimal Fed Funds Rate? IMPORTANT: Enter your answer in a whole number with one decimal and don't add the "\%" sign. For instance, if your answer is 1.54%, enter 1.5

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