Suppose the Federal Reserve's target for inflation is 2%, the current inflation rate is 2%, and the output gap is 4%. What should be the target for the federal funds rate according to the Taylor rule as it is presented in the book?
+1
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose the Federal Reserve's target for inflation is 2%, the current inflation rate is 2%, and the output gap is 4%. What should be the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Business » Suppose the Federal Reserve's target for inflation is 2%, the current inflation rate is 2%, and the output gap is 4%. What should be the target for the federal funds rate according to the Taylor rule as it is presented in the book?