The Taylor Rule suggests that:A)for each 1 percent increase in inflation above its target ratethe Fed should reduce the real Federal funds rate by percentagepointB)for each 1 percent increase of real GDP above potential GDP theFed should raise the real Federal funds rate by percentagepointC)for each 1 percent increase in inflation above its target ratethe Fed should reduce the money supply by 2 percentage pointsD)for each 1 percent increase of real GDP above potential GDP theFed should increase the money supply by 2 percentage points
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