Question Help Assume that the equilibrium real federal funds rate is 2% and the target for inflation is 30%. Suppose that the inflation rates 3.0% leading to an inflation gap of 0 0% (equal to 30% - 30% and real GOP is 05 potential resulting in a positive output gap of 0.5% The Taylor rule suggests that the federal funds should be seat bove O A. 3.25% OB. 5.25% OC. 6.25% OD. 1.25%