According to the Taylor Rule, if the output gap rises by 2% and the inflation gap rises by 1%, then the real federal funds rate should rise by
A) 1.5%.
B) 2.0%.
C) 2.5%.
D) 3.0%.

Question

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The Answer of According to the Taylor Rule, if the output gap rises by 2% and the inflation gap rises by 1%, then the real federal funds rate should rise by
A) 1.5%.
B) 2.0%.
C) 2.5%.
D) 3.0%.

According to the Taylor Rule, If the Output Gap Rises