Suppose we have the following information about the economy Actual Inflation Inflation Target 3% Output:-)2% below potential output What direction is the Taylor Rule guiding the federal funds rate to go and why is it guiding it in that direction? O The Taylor Rule is stating that the federal funds rate should be increased because output is above potential output and inflation is above arget rate O The Taylor Rules stating that the federal funds rate should be decreased because output is above potential output and inflation is above target rate The Taylor Rules stating that the federal funds rate should be decreased because output is below potential output and inflation is below its target rate The Taylor Rules stating that the federal funds rate should be decreased because tout is above potential output and inflation is below its target rate