Suppose the current rate of inflation is 6%, Real GDP is $21 trillion, and Potential Real GDP is $20.4 trillion. According to the Taylor Rule, what is the appropriate Federal Funds Rate target rounded to one decimal point? 8.5% O7.3% O9.1% 6.5%

ENGR.ECONOMIC ANALYSIS
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Suppose the current rate of inflation is 6%, Real GDP is $21 trillion, and Potential
Real GDP is $20.4 trillion. According to the Taylor Rule, what is the appropriate
Federal Funds Rate target rounded to one decimal point?
8.5%
O 7.3%
O 9.1%
6.5%
Transcribed Image Text:Suppose the current rate of inflation is 6%, Real GDP is $21 trillion, and Potential Real GDP is $20.4 trillion. According to the Taylor Rule, what is the appropriate Federal Funds Rate target rounded to one decimal point? 8.5% O 7.3% O 9.1% 6.5%
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With a current inflation rate of 1.8%, Real GDP = $23,450, and Potential Real GDP = $22,900, what is the appropriate Federal Funds Rate According to the Fed?

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With a current inflation rate of 1.8%, Real GDP = $23,450, and Potential Real GDP = $22,900, what is the appropriate Federal Funds Rate According to the Fed?

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