Suppose the Equilibrium Real Federal Funds Rate Is 5 Percent,the

Suppose the equilibrium real federal funds rate is 5 percent,the target rate of inflation is 3 percent,the current inflation rate is 5 percent,and real GDP is 4 percent above potential real GDP.If the weights for the inflation gap and the output gap are both 1/2,then according to the Taylor rule the federal funds target rate equals

A) 1 percent.
B) 9 percent.
C) 13 percent.
D) 17 percent.

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