According to the Taylor Rule, if the inflation rate is 3 percent and the GDP gap is 2 percent, what does the federal funds rate target equal?
A) 8.5 percent
B) 5.5 percent
C) 3.5 percent
D) 6.5 percent
D
Economics
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What will be an ideal response?
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a. True b. False Indicate whether the statement is true or false
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