Question
For the following questions use the Taylor Rule. a) The Federal Reserve has an inflation target of 2%. If inflation is 2% and increases to
For the following questions use the Taylor Rule.
a) The Federal Reserve has an inflation target of 2%. If inflation is 2% and increases to 3%, by how much should the Federal Reserve change their interest rate target?
b) The Federal Reserve has an inflation target of 2%. Suppose now the output gap goes from 0% to - 5%, by how much should the Federal Reserve change their interest rate target?
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The Commanding Heights The Battle For The World Economy
Authors: Daniel Yergin, Joseph Stanislaw
1st Edition
068483569X, 9780684835693
