Macroeconomics 9th Edition by David Colander

تمرين 9

State the Taylor rule.hat does the rule predict will happen to the Fed funds rate in each of the following situations
a.Inflation is 2 percent, the inflation target is 3 percent, and output is 2 percent below potential.
b.Inflation is 4 percent, the inflation target is 2 percent, and output is 3 percent above potential.
c.Inflation is 4 percent, the inflation target is 3 percent, and output is 2 percent below potential.