Assume the current inflation rate is 2.4% and output is at the full-employment level.If the central bank has set nominal interest rates at 5.6%, what is the central bank's inflation target if it follows the Taylor rule?
A)0%
B)1%
C)2%
D)3%
E)4%

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The Answer of Assume the current inflation rate is 2.4% and output is at the full-employment level.If the central bank has set nominal interest rates at 5.6%, what is the central bank's inflation target if it follows the Taylor rule?
A)0%
B)1%
C)2%
D)3%
E)4%

Assume the Current Inflation Rate Is 2