Answer: 48%
Explanation:
Based on the information given, the average rate of return will be:
= (Average return) / (Average Investment) x 100
where, average return will be:
= ($240000 × 4)/4
= $240000
Then, annual averay rate of return will be:
= $240000/$500000 × 100
= 48%
Correct option: real value
The real value is the value of something (any product or service) in terms of other product or service while Nominal value is the value of something in terms of money. Here the value of college tuition which is a service is equal to the cost of Toyota Camry which is a product. Since the value of a service is equal to the value of a product, this is an example of real value.
Explanation:
Ok so the Taylor Rule is one kind of targeting monetary policy rule of a central bank. The Taylor rule was proposed by the American economist John B. Taylor in 1992, who is currently the George P.Shultz Senior Fellow In Economics at and the director of Standford’s Introductory Economics Centre.
Also the Taylor Rule suggests that the Federal Reserve should raise rates when inflation is above target or when gross domestic product (GDP) growth is too high and above potential. It also suggests that the Fed should lower rates when inflation is below the target level or when GDP growth is too slow and below potential.
