According to the Taylor rule, if the central bank announced a zero percent inflation target but the current inflation rate is 2% and output is at the full-employment level, at what level should the central bank set the nominal interest rate?
A)1%
B)2%
C)3%
D)4%
E)5%

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The Answer of According to the Taylor rule, if the central bank announced a zero percent inflation target but the current inflation rate is 2% and output is at the full-employment level, at what level should the central bank set the nominal interest rate?
A)1%
B)2%
C)3%
D)4%
E)5%

According to the Taylor Rule, If the Central Bank Announced