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If the Fed is following the benchmark Taylor Rule, and the equilibrium real interest rate is 4%, what will the equilibrium inflation rate be? (Note

If the Fed is following the benchmark "Taylor Rule", and the equilibrium real interest rate is 4%, what will the equilibrium inflation rate be? (Note that in equilibrium, the output gap is 0)

A. 0%

B. 2%

C. 4%

D. 6%

E. 8% or higher

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