What is the federal funds target rate under

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Reference no: EM131109861

According to the Taylor rule, what is the federal funds target rate under the following conditions?

-Equilibrium real federal funds rate equals 4%

-Target rate of inflation equals 4%

-Current inflation rate equals 3%

Real GDP is 1% below potantial real GDP

The federal funds target rate equals _%(rounded answer to two decial places.)

Reference no: EM131109861

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