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Business, 18.12.2019 17:31 PresleyPie2700

According to the taylor rule, multiple choice if inflation falls by 1 percentage point below its target of 2 percent, then the fed should raise the real federal funds rate by one-half a percentage point. when real gdp is equal to potential gdp and inflation is equal to its target of 4 percent, the federal funds rate should be kept at 2 percent. if real gdp rises by 2 percent above potential gdp, the fed should raise the real federal funds rate by 1 percentage point. all of these are appropriate fed actions.

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