Assume that targeted inflation is 1 percent.According to the Taylor rule,the federal funds rate is:
A)equal to 2 percent if inflation and output are at their target level.
B)equal to 6 percent if inflation is 3 percent,output is at its target level and the Fed's targeted federal funds rate is 2 percent.
C)equal to 4 percent if inflation is 2 percent ,output is 2 percent above its target level and the Fed's targeted federal funds rate is 2 percent.
D)none of the above are correct.

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The Answer of Assume that targeted inflation is 1 percent.According to the Taylor rule,the federal funds rate is:
A)equal to 2 percent if inflation and output are at their target level.
B)equal to 6 percent if inflation is 3 percent,output is at its target level and the Fed's targeted federal funds rate is 2 percent.
C)equal to 4 percent if inflation is 2 percent ,output is 2 percent above its target level and the Fed's targeted federal funds rate is 2 percent.
D)none of the above are correct.

Assume That Targeted Inflation Is 1 Percent