According to the Taylor rule, If the current infiation rate is 3.2%, output is 1% above the full-employment level, and the central bank's announced inflation target is 2%, at what level should the central bank set the nominal interest rate? Multiple Choice 2.2% 3.3% 4.4%

According to the Taylor rule, If the current infiation rate is 3.2%, output is 1% above the full-employment level, and the central bank's announced inflation target is 2%, at what level should the central bank set the nominal interest rate? Multiple Choice 2.2% 3.3% 4.4%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

According to the Taylor rule, Iif the current inflation rate is 3.2%, output is 1% above the full-employment level, and the central
bank's announced inflation target is 2%, at what level should the central bank set the nominal interest rate?
Multiple Choice
2.2%
3.3%
4,4%
5.8%
6.3%

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