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If the Current Rate of Inflation Is 4 Percent,using the Values

Question 51

Multiple Choice

If the current rate of inflation is 4 percent,using the values suggested by Professor Taylor,
,the Taylor rule predicts a federal funds rate of:

A) 1 percent.
B) 4.5 percent.
C) 3 percent.
D) 4 percent.
E) 0.5 percent.

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