Business, 23.06.2021 19:40 jwood287375

The Taylor rule specifies how policymakers should set the federal funds rate target. Suppose that U. S. real GDP rises 1% above potential GDP, all else constant. According to the Taylor rule, the Fed should the federal funds rate target by . Suppose instead that the U. S. inflation rate rises by 1%, all else constant. According to the Taylor rule, the Fed should the federal funds rate target by .

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The Taylor rule specifies how policymakers should set the federal funds rate target. Suppose that U....