Business, 26.11.2019 04:31 fickllyd000
Assume that the equilibrium real federal funds rate isâ 2% and the target for inflation is 3.0â%. suppose that the inflation rate is at 4.0â%, leading to an inflation gap of 1.0â% â(equal to 4.0â%minus 3.0â%), and real gdp is 0.5â% above itsâ potential, resulting in a positive output gap of 0.5â%. the taylor rule suggests that the federal funds rate should be setâ at:
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Assume that the equilibrium real federal funds rate isâ 2% and the target for inflation is 3.0â%. su...
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