The Next Questions Refer to the Following

The next questions refer to the following.
Suppose the central bank follows the Taylor Rule
nominal interest rate = .03 + .5(output gap) + 1.5(inflation rate - .02) .
-For an economy at full employment with an inflation rate of .04,the central bank will set its nominal interest rate equal to

A) .03
B) .05
C) .06
D) .065
E) .09