Assume the Central Bank's Announced Inflation Target Is 2%, Output

Multiple Choice

Assume the central bank's announced inflation target is 2%, output is 2% below the full-employment level, and the Taylor rule suggests that the central bank sets the nominal interest rate at 4.5%.What is most likely the current inflation rate?

A) 3) 0%
B) 3) 6%
C) 4) 0%
D) 4) 5%
E) 6) 0%