Multiple Choice
Assume the current inflation rate is 2.4% and output is at the full-employment level.If the central bank has set nominal interest rates at 5.6%, what is the central bank's inflation target if it follows the Taylor rule?
A) 0%
B) 1%
C) 2%
D) 3%
E) 4%
Correct Answer:
Verified
Correct Answer:
Verified
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