Using Taylor's rule, when the equilibrium real overnight rate is 3 percent, the positive output gap is 2 percent, the target inflation rate is 1 percent, and the actual inflation rate is 2 percent, the nominal overnight rate target should be ________.
A) 5 percent
B) 5.5 percent
C) 6 percent
D) 6.5 percent

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The Answer of Using Taylor's rule, when the equilibrium real overnight rate is 3 percent, the positive output gap is 2 percent, the target inflation rate is 1 percent, and the actual inflation rate is 2 percent, the nominal overnight rate target should be ________.
A) 5 percent
B) 5.5 percent
C) 6 percent
D) 6.5 percent

Using Taylor's Rule, When the Equilibrium Real Overnight Rate Is