1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mestny [16]
3 years ago
8

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:

6%

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%

You might be interested in
Hutchinson Corporation has zero debt - it is financed only with common equity. Its total assets are $330,000. The new CFO wants
Taya2010 [7]

Answer:

firm must borrow $132,000 to achieve the target debt ratio

correct option is a. $132,000.00

Explanation:

given data

Total Assets = $330,000

Desired Debt/Assets Ratio = 40%

to find out

firm borrow to achieve the target debt ratio

solution

we get here funds to be borrowed through debt

Value of Debt = Total Assets × Desired Debt/Assets Ratio   ...........1

put here value we get  

Value of Debt = $330,000  × 40%

Value of Debt = $132,000

so that we can say firm must borrow $132,000 to achieve the target debt ratio

correct option is a. $132,000.00

6 0
3 years ago
Cash flow from operating activities is increased by: a. depreciation and amortization b. a decrease in accounts receivable c. a
Svetlanka [38]

Answer:

All of the these above

Explanation:

Cash flow from operating is a part of cash flow statements in a company that describes the various ways through which cash is both sourced and used from continuing business transactions or activities within a given period of time.

Examples includes working capital, net income from income statements, tax liabilities, account payable, depreciation and amortization, a decrease in accounts receivable, etc.

7 0
3 years ago
Schnucks Supermarket promotes products like milk, eggs and other daily essentials at very low prices in order to attract consume
Veseljchak [2.6K]

Answer:

C. Build consumer traffic

Explanation:

By lowering the prices of daily essentials like milk and eggs Schnucks Supermarkets is building consumer traffic in their stores. The lower prices will tend to attracts more and more consumers because of that demand principle of the lower the prices the higher the demand. When the consumers increases what the supermarket achieves is a bigger consumer traffic in their store.

7 0
2 years ago
the promotional mix is a combination of tools. multiple choice question. research segmentation communication analysis
Mamont248 [21]

The promotional mix is a combination of Communication tools. Option (c) is correct.

<h3>What is Tool?</h3>

A tool or instrument used to perform a specific purpose, especially one that is held in the hand.

To accomplish a certain marketing objective, a promotional mix combines marketing strategies such as direct marketing, sales, public relations, and advertising. Usually, the promotional mix is just a small component of the overall marketing mix.

Therefore, Option (c) is correct. the promotional mix is a combination of Communication tools.

Learn more about Tool, here;

brainly.com/question/19707541

#SPJ1

6 0
1 year ago
A company is planning to move to a larger office and is trying to decide if the new office should be owned or leased. Cash flows
skad [1K]

Answer:  13.26%

Explanation:

Year 0 Investment = $385,000

Incremental Cash flow every year = Cashflow if owned - Cashflow if leased

= 164,000 - 133,000

= $31,500

Incremental cashflow in Year 10 = Incremental Cashflow + Cashflow from sale of property

= 31,500 + 750,000

= $781,500

Using Excel and the IRR function, the rate is = 13.26%

5 0
3 years ago
Other questions:
  • A nationwide chain of pet stores wishes to identify the trade-offs that its customers are willing to make between low-cost produ
    6·1 answer
  • In the product imitator strategy, the order winner is _______ for the customer; whereas, in the product innovator strategy, the
    7·1 answer
  • Nick Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity
    6·1 answer
  • The purpose of posting is to A. list the transactions in chronological order in the journal. B. provide an explanation of the tr
    5·2 answers
  • Jorge is creating a directory of student phone numbers and addresses. He performed a query to obtain the data he will include. H
    8·2 answers
  • Bearcat Construction begins operations in March and has the following transactions.
    14·1 answer
  • 7. The Johnsons are in an auto accident with a driver who lives near them in the same town. No one is injured but the Johnsons'
    11·2 answers
  • SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,554,000 Cost of goods sold 761,460 Gross profit 792,540 Oper
    10·1 answer
  • PLSS ASAP HELLPP How many of the colonists of Jamestown died before they made it to shore, due to the difficult voyage? WILL GIV
    6·1 answer
  • Building, maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!