Answered You can hire a professional tutor to get the answer.
QUESTION
Suppose that the equilibrium real federal funds rate is 5 percent and the target rate of inflation is 2 percent.
Suppose that the equilibrium real federal funds rate is 5 percent and the target rate of inflation is 2 percent. Using the following information and the Taylor rule to calculate the federal funds rate target.
Current inflation rate = 7%
Potential real GDP = $14.84 trillion
Real GDP = $14.23 trillion
The federal funds target rate is __________%
