Since monetary policy changes made through the fed funds rate occur with a lag policy makers are usually more concerned with adjusting policy according to changes in the forecasted or expected inflation rat, rate than the current inflation rate. In light of this, suppose that monetary policymakers Emily the Taylor rule to set fed rate, where the inflation gap is defined as the difference between expected inflation and target inflation rate. Assume that the weights on both the inflation and the output gaps are 1/2, the equilibrium real fed funds rate is 2%, the inflation rate target is 2% and the output gap is 1%

a. If the expected inflation rate is 4% then what Target should the fed funds be set according to the Taylor rule?