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Question 15 15 p A The Taylor rule as an approximation that seeks to explain how the Federal Open Market Committee /FOMC sets their target.

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Question 15 15 p A The Taylor rule as an approximation that seeks to explain how the Federal Open Market Committee /FOMC sets their target. Using the Taylor rute. If inflation increased by 3 percentage points, Calculate what would happen to the target inominal federal funds rate: 3 marks) 2. Calculate what would happen to the real interest rate: 3 marks) 8. Comidering the Taylor rule, what will be the policymakers' response when the initiation runs above the target lovel? Andy your uniwer. (3 mural Analyse why monetary policy decisions are made by committee in all major central banks in the world. (3 marks) D. Analyze the mechanisms through which the Fed can meet the target Fed fund rate, 13 marks Question 15 15 p A The Taylor rule as an approximation that seeks to explain how the Federal Open Market Committee /FOMC sets their target. Using the Taylor rute. If inflation increased by 3 percentage points, Calculate what would happen to the target inominal federal funds rate: 3 marks) 2. Calculate what would happen to the real interest rate: 3 marks) 8. Comidering the Taylor rule, what will be the policymakers' response when the initiation runs above the target lovel? Andy your uniwer. (3 mural Analyse why monetary policy decisions are made by committee in all major central banks in the world. (3 marks) D. Analyze the mechanisms through which the Fed can meet the target Fed fund rate, 13 marks

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