If the Taylor rule is expressed as:
Target federal funds rate = 2 + current inflation + ½(inflation gap) +½(output gap);
and the current rate of inflation is 4 percent while the target rate is 2 percent and the economy is producing 1 percent above its full potential level, what should be the target federal funds rate?

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The Answer of If the Taylor rule is expressed as:
Target federal funds rate = 2 + current inflation + ½(inflation gap) +½(output gap);
and the current rate of inflation is 4 percent while the target rate is 2 percent and the economy is producing 1 percent above its full potential level, what should be the target federal funds rate?

If the Taylor Rule Is Expressed As