Using the taylor rule calculate the fed funds target rate


Using the Taylor Rule, calculate the Fed Funds target rate, given the information below. (Note: Enter your answer to the nearest two decimal places, and DO NOT INCLUDE a percentage sign. Ex.: If your calculated answer is 3.7543, enter 3.75): -equilibrium Fed Funds rate = 1.50% -actual inflation rate = 2.5% -target inflation rate = 2.00% -real GDP = 1% above potential GDP

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Business Economics: Using the taylor rule calculate the fed funds target rate
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