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Business, 02.12.2021 04:40 jayzeptor

Suppose that inflation is 2 percent, the federal funds rate is 4 percent, and real GDP is 4 percent above potential GDP. According to the Taylor rule, in what direction and by how much should the Fed change the real federal funds rate? Instructions: Round your answer to 2 decimal places.

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the federal funds rate by
percent.

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Suppose that inflation is 2 percent, the federal funds rate is 4 percent, and real GDP is 4 percent...
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