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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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Answer:

Explanation:

Bank reconciliation

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July 31,2016

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Adjustments:

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4 years ago

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3 years ago

BusyBody Company expects its November sales to be 20% higher than its October sales of $ 160 comma 000. Purchases were $ 90 com

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Answer:

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3 years ago

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4 years ago

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