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Using Taylor's rule, when the equilibrium real federal funds rate is 3.0 percent; the output gap is -2.5 percent; the target inflation rate is 2

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Using Taylor's rule, when the equilibrium real federal funds rate is 3.0 percent; the output gap is -2.5 percent; the target inflation rate is 2 percent; the actual inflation rate is 3.5 percent, the nominal federal funds rate target should be approximately percent. O A. 6.5 OB. 5 O C. 5.5 OD. 6

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