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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%

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Apple Photography, Inc.

Based on this information, the balance in the cash account at the end of January would be:_____.

b) $12,115.

Explanation:

a) Cash Account

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6 0
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Crane Company sells 50000 units for $10 a unit. Fixed costs are $350000 and net income is $100000. What should be reported as va
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Answer:

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Explanation:

Given:

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