If the central bank follows the taylor rule how does its, Financial Management

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If the central bank follows the taylor rule how does its

Suppose the central bank measures the output gap accurately but mismeasures the neutral real interest rate. It believes the neutral rate is 1 percent, but the true neutral rate is 3 percent.

If the central bank follows the Taylor rule, how does its mistake affect the interest rates it sets and the behavior of output and inflation? Explain.

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