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30-03-2021
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Based on the Taylor Rule use the following information to calculate the target federal funds rate.

Variable Value
Target inflation rate 2 percent
Current inflation rate 1 percent
Real equilibrium federal funds rate 2 percent
Output gap 10 percent

Respuesta :

rfrancoalmonte888 rfrancoalmonte888

30-03-2021

Answer:

8.0 %

Explanation:

inflation gap = 3 - 2 = 1

=3 + 2 + (.5 x 1) + (.5 x 5)

= 8.0

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