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Using the Taylor rule, calculate the target for the federal funds rate for July 2010 using the following information: Equilibrium real federal funds rate
Using the Taylor rule, calculate the target for the federal funds rate for July 2010 using the following information: Equilibrium real federal funds rate Target inflation rate Current inflation rate Output gap The target for the federal funds rate for July 2010 is 3% 2% 0.9% - 8% %. (Enter your response rounded to two decimal places and include a minus sign if necessary.)
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To calculate the target federal funds rate using the Taylor rule you would generally use the formula ...
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Money Banking And The Financial System
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
3rd Edition
134524063, 9780134524573, 978-0134524061
