Based on the Taylor Rule use the following information to calculate the target federal funds rate.
Variable Value Target inflation rate: 2 percent
Current inflation rate : 10 percent
Real equilibrium federal funds rate : 2 percent
Output gap: 8 percent
Question: In this case, the Federal funds target rate is: (Round your solution to one decimal place.)
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Home » Business » Based on the Taylor Rule use the following information to calculate the target federal funds rate. Variable Value Target inflation rate: 2 percent Current inflation rate : 10 percent Real equilibrium federal funds rate : 2 percent Output gap: 8