Suppose that the equilibrium real federal funds rate is 1 percent and the target.rate of inflation is 3 percent. Use the following information and the Taylor.rule to calculate the federal funds rate target Current inflation rate 2 percent Potential real GDP $14.93 trillion Real GDP $14.11 trillion The federal funds target rate is %. (Enter your response rounded to two decimal places)

Suppose that the equilibrium real federal funds rate is 1 percent and the target.rate of inflation is 3 percent. Use the following information and the Taylor.rule to calculate the federal funds rate target Current inflation rate 2 percent Potential real GDP $14.93 trillion Real GDP $14.11 trillion The federal funds target rate is %. (Enter your response rounded to two decimal places)

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 4QCMC

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