The graphs of y=f(x) and y=g(x) are shown. If g(x)=k*f(x), what is the value of k? Thank you!
1 answer:
You might be interested in
Answer:
1.5%
Step-by-step explanation:
According to the Taylor rule, the federal funds rate targeted by the Fed is:
Where AI is the actual inflation (1%), DI is the desired inflation (2%) and PD is the deviation from potential (2%):
The Fed should target a federal funds rate of 1.5%.