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3 years ago

According to the Taylor rule, what is the federal funds target rate under the following conditions?

Business

1 answer:

Umnica [9.8K]3 years ago

6 0

Answer:

Explanation:

According to the Taylor rule,

it = pt + rt* + 0.5 ( pt - pt*) + 0.5 ( yt - yt')

where it = target rate = (To be found out in the question)

pt = rate of inflation ( = 3%), rt* = real Fed funds rate( = 4%)

pt* = target inflation(= 4%)

yt - yt' = difference between real GDP and potential GDP ( = -1%)

Therefore, it = 3 + 4 + 0.5( 3% - 4%) + 0.5 ( -1%)

= 6%

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Bioclean Co., a merchandiser, sells a biodegradable cleaning product and has predicted the following sales for the first four mo

Zanzabum

Answer:

2,060 units

Explanation:

As we know thestock policy of the firm is the ending inventory for each month should be the 30 % of the next month's sales

In the case of february, following this policy:

Starting inventory: is the same of ending inventory of the previous month: 0,3*2,000 (February´s sales) units= 600 units.
Ending inventory= 0,3*2,200 (March´s sales) units= 660 units

Also, Ending Inventory (EI) is the result of the sum of Starting Inventory (SI) and February Purchases (P) minus February Sales (S)

EI= SI+P-S

We want to know P ( units Purchased), so:

P= EI-SI+S= 660-600+2,000=2060 units

8 0

3 years ago

Assuming the expectations theory is the correct theory of the term structure, calculate the interest rates in the term structure

Trava [24]

Answer:

The plot of the yields is attached.

Explanation:

i) 6%, 7%, 8%, 7%, 6%

Interest rate on 1 year maturity = 6%/1 = 6%

Interest rate on2 year maturity = (6%+7%)/2 = 6.5%

Interest rate on 3 year maturity = (6%+7%+8%)/3 = 7%

Interest rate on 4 year maturity = (6% + 7% + 8% + 7%)/4 = 7%

Interest rate on 5 year maturity = (6% + 7% + 8% + 7% + 6%)/7 = 6.8%

ii)6%, 5%, 4%, 5%, 6%

Interest rate on 1 year maturity = 6%/1 = 6%

Interest rate on 2 year maturity = (6% + 5%)/2 = 5.5%

Interest rate on 3 year maturity = (6% + 5% + 4%)/3 = 5%

Interest rate on 4 year maturity = (6% + 5% + 4% + 5%)/4 = 5%

Interest rate on 5 year maturity = (6% + 5% + 4% + 5% + 6%)/5 = 5.2%

3 0

3 years ago

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested con

Anna [14]

Full question:

When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be __________ to the company's offerings.

a. responsive

b. perceptive

c. identifiable

d. reachable

e. quantifiable

Answer:

Starbucks's critics suggested consumers would not be responsive to the company's offerings.

Explanation:

Marketing is all concerning providing the requirements and needs of purchasers. Consumers have supplies and are prepared to contribute to meeting their requirements by acquiring goods and services. The benefit of products offered in the markets depends on whether they satisfy consumer or company needs.

Consumers’ choices on whether to acquire or not to acquire will be a sign of the production of the goods in the market. A portion is responsive if its members behave likewise and confidently to the purchasing mix. Initial critics did not gather that purchasers would acknowledge confidently to the proposal of a $4 cup of coffee.

4 0

3 years ago

Lund Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any under o

BartSMP [9]

Answer:

A. $5,250

Explanation:

As for the provided details we have,

The total cost of work in process on 31 March = $14,000

In this amount included as cost of direct labor = $5,000

This means the remaining amount $14,000 - $5,000 = 9,000 relates to cost of direct material and cost of manufacturing overheads.

Also provided that manufacturing overheads are applied using the predetermined rate of 75% of direct labor.

Thus, amount charged to work in process inventory for manufacturing overheads shall be $5,000 direct labor cost $\times$ 75% = $3,750

Thus, direct material cost in work in process = $14,000 - $5,000 - $3,750 = $5,250

3 0

3 years ago

A sales associate authorized to negotiate a sale of property has the authority to

bija089 [108]

Has the authorization to perform underneath the supervision of a broker or, in certain circumstances, a founder.

A sales assistant who's been authorized to negotiate this same acquisition of real estate seems to have the authorization to operate under the supervision of a real estate agent or, under certain circumstances, ownership.
He isn't permitted to modify legal requirements, or to affect the price or conditions of a specific asset without the supervisor's explicit approval.

Thus the above response is right.

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brainly.com/question/15335966

3 0

2 years ago