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Suppose that in 1980, the US, inflation rate was 14 percent and the unemployment rate reached 76 percent. Suppose that the target rate of inflation

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Suppose that in 1980, the US, inflation rate was 14 percent and the unemployment rate reached 76 percent. Suppose that the target rate of inflation was 3 percent back then and the full employment rate of unemployment was 5.5 percent at that time. What value does the Taylor Rule predict for the Fed's target interest rate? Instructions: Enter your answer rounded to 2 decimal places. percent Refer to the table for Moola below to answer the following questions. Interest Rate Money Supply $ 560 500 500 500 500 Money Demand $ 800 700 600 see 480 Investment at Interest Rate Show) $70 60 SO 4e 3e Potential Real Actual Real GDP at Interest GOP (Rate Shown) $350 $ 390 350 370 350 350 330 350 310 5 6 7 8 350 Instructions: Enter your answers as a whole number a. What is the equilibrium interest rate in Moola? percent b. What is the level of investment at the equilibrium interest rate? c. Is there either a recessionary output gap (negative GDP gap) or an inflationary output gap (positive GDP gap) at the equilibrium interest rate and if either, what is the amount? (Click to select) of s d. Given money demand, by how much would the Moola central bank need to change the money supply to close the output gop? (Click to select the money supply by $ e. What is the expenditure multiplier in Moola

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