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Funds Rate Target Assignment | Homework For You

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December 13th, 2019

Suppose that the equilibrium real federal funds rate is 5 percent and the target rate of inflation is 2 percent. Using the following information and the Taylor rule to calculate the federal funds rate target.

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Homework For You

Current inflation rate = 7%

Potential real GDP = $14.84 trillion

Real GDP = $14.23 trillion

The federal funds target rate is __________%. Get Economics homework help today

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