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Suppose the current rate of inflation is 3%, real gdp is $18,500, and potential gdp is $18,700. According to the Taylor Rule, what is the

Suppose the current rate of inflation is 3%, real gdp is $18,500, and potential gdp is $18,700. According to the Taylor Rule, what is the appropriate Federal Funds Rate target?

a. 5%

b. 4%

c. 2%

d. 8%

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