Business, 08.04.2021 21:10 sammuelanderson1539
Suppose the initial inflation rate and inflation target are both 2%, that the real federal funds rate is 2%, and that the economy is at the full employment level of output. According the Taylor Rule, the federal funds target should be . Suppose now that the inflation rate changes to 6%. The Taylor Rule now prescribes that the federal funds target should be
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Suppose the initial inflation rate and inflation target are both 2%, that the real federal funds rat...
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