Using the Taylor rule, calculate the target for the federal funds rate for July 2010 using the following information Target inflation rate Equilibrium real federal funds rate 3% 2% 1.2% -8% Current inflation rate Output gap The target for the federal funds rate for July 2010 is % (Enter your response rounded to two decimal places and include a minus sign if necessary)

Using the Taylor rule, calculate the target for the federal funds rate for July 2010 using the following information Target inflation rate Equilibrium real federal funds rate 3% 2% 1.2% -8% Current inflation rate Output gap The target for the federal funds rate for July 2010 is % (Enter your response rounded to two decimal places and include a minus sign if necessary)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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