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2 years ago

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

Business

1 answer:

Umnica [9.8K]2 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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Regarding this suit, Nebraska has in rem jurisdiction.

Explanation:

It is the legal term which defines the power over real or private property or the rights of an individual about whom the judge has no jurisdiction in personal.

For example, if a divorce couple wants a court to control its family home transactions, the court has access to the property.

Judgement in rem is a decision on the nature of a certain subject matter, or taken in a property case, with no knowledge of the claimant or of others involved in the land.

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3 years ago

. Chandler Tire Co. is trying to decide which one of two projects it should accept. Both projects have the same start-up costs.

Alex787 [66]

Answer:

So project two is better because it will increase the wealth of Chandler Tire by $ 18,598.33 more than Project 1

Explanation:

To determine which project to be selected, we will compute the present value (PV) of the two projects and select the one with a higher PV.

Present value is the today worth of the future cash inflows from a project. The higher the present value the more wealth is been created. So a project with a higher PV is better if two are been compared.

So when comparing two projects, the one with a higher PV is better.

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$196,793.10

PV of Project 2

PV = 48,000 × 1- (1.015)^(-8)

$215,391.43

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2 years ago

Many firms are finding that high-tech, computerized training has dual benefits. It develops employees who are more effective and

Xelga [282]

This is an example of a(n) Organisational tangible resource

Explanation:

Tangible resources include currency, inventory, equipment, land or buildings. Tangible resources The products can be liquidated quickly and have a given worth. They are important for accounting, and as they reach balance sheets and income statements, they make a business know their financial status.

Each organisation needs capital and assets to run.

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3 years ago

Travis International has a debt payment of $2.34 million that it must make 6 years from today. The company does not want to come

Nataliya [291]

Answer:

$27,692.31

Explanation:

Principle amount = $2.34 million = $2,340,000

Time, n = 6 years = 72 months

Rate of interest = 5.33%

Monthly rate of interest, r = 5.33% ÷ 12 = 0.44% = 0.0044

Compounded monthly

FV of Annuity = ( Monthly deposits ) × { [ ( 1 + r )ⁿ - 1 ] ÷ r }

$ 2,340,000 = ( Monthly deposits ) × { [ ( 1 + 0.0044 )⁷² - 1 ] ÷ 0.0044 }

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2 years ago

Read 2 more answers

The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond

True [87]

Answer and Explanation:

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2 years ago