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The original Taylor rule looks like the folllowing: assume the FED believes the equilibrium real federal funds rate is 3% and their inflation Target is
The original Taylor rule looks like the folllowing: assume the FED believes the equilibrium real federal funds rate is 3% and their inflation Target is 2% period. when expected inflation is at 2% and output is exactly at potential, what is the Fed's nominal target rate (written as a 5)
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