Question
Suppose the inflation rate target is 2% and the long run federal funds target is 3.5% Using the Taylor rule, calculate the federal funds rate
Suppose the inflation rate target is 2% and the long run federal funds target is 3.5% Using the Taylor rule, calculate the federal funds rate if the current inflation rate is 5% and real output is 6% below trend output.
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Principles of economics
Authors: N. Gregory Mankiw
6th Edition
978-0538453059, 9781435462120, 538453052, 1435462122, 978-0538453042
