Calculate the fed funds target rate

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Reference no: EM131101621

Using the Taylor Rule, calculate the Fed Funds target rate, given the information below. (Note: Enter your answer to the nearest two decimal places, and DO NOT INCLUDE a percentage sign. Ex.: If your calculated answer is 3.7543, enter 3.75): -equilibrium Fed Funds rate = 1.50% -actual inflation rate = 2.5% -target inflation rate = 2.00% -real GDP = 1% above potential GDP

Reference no: EM131101621

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