Use the following formula for the Taylor rule target federal funds rate = natural rate of interest + current inflation +1/2 (inflation gap) +1/2 (output gap) to determine what would happen if the inflation rate in the economy were to fall by 2 percent below the target inflation rate. Then, the target federal funds rate would Multiple Choice remain at 2.5 percent. decrease by 3.0 percent. decrease by 1.0 percent. increase by 1.0 percent