Question
Suppose the the equilibrium real federal funds rate is 4 percent and the target rate of inflation of 1 percent. Use the following information and
Suppose the the equilibrium real federal funds rate is 4 percent and the target rate of inflation of 1 percent. Use the following information and the Taylor rule to calculate the federal funds rate target.
Current inflation rate= 5
5 percent
Potential real GDP= $14.72
14.72 trillion
Real GDP= $14.66
14.66 trillion
The federal funds target rate is ________%?
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OPEC Twenty Years And Beyond
Authors: Ragaei El Mallakh
1st Edition
1317244737, 9781317244738
