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Question 22 1 pts Suppose that the following data pertain to 2021 (these are approximately true values): Actual inflation rate = 6 percent Real GDP
Question 22 1 pts Suppose that the following data pertain to 2021 (these are approximately true values): Actual inflation rate = 6 percent Real GDP = 19,355.00 Potential GDP = 19,750.00 According to Taylor Rule the federal funds rate (FFR) in 2021 should have been: O a. FFR = 6 percent O b. FFR = 7 percent O c. FFR = 8 percent O c. FFR = 9 percent O e. None of the above.Question 23 1 pts Going back to Question 22, in 2021 the actual federal funds rate (FFR) was about 1 percent. Then, according to Taylor Rule, this actual FFR: O a. Would cause the inflation rate to increase. O b. Would cause the inflation rate to decrease. O c. Would cause the inflation rate to stay unchanged at 6 percent. O d. Any of the above scenarios could be the outcome. O e. Taylor Rule does not tell us what would happen to the inflation rate
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