If the inflation rate target is 2%, the current inflation rate is 1%, and the output gap is minus 2%, then according to the taylor rule, the nominal federal funds rate should be percent. a. five b. three c. zero d. four e. none of the above

E

Explanation:

According to the Taylor rule, the formula for finding nominal federal funds rate is given as

i = r* + pi + 0.5(pi - pi*) + 0.5(y - y*),

Where i is the nominal federal funds rate, r* is the real federal funds rate (taken as 2%), pi is the rate of inflation, pi* is the target inflation rate, y is the logarithm of real output and y* is the logarithm of potential output

Substituting values, we have;

i = 2 + 1 + 0.5(1-2) + 0.5(2)

i = 3.5%

imperial crisis leads to civil war.

roman forces withdraw from britain as goths attack rome.

odoacer topples romulus augustus

huns attack the empire and drive german peoples ahead of them.

hello it is $0 for apex