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Alisiya [41]
2 years ago
14

Suppose that the Fed had followed the Taylor rule before the financial crisis of 2008. In the first quarter of​ 2007, the inflat

ion rate was 2.5 percent a year and the output gap was zero. At what level would the Fed have set the federal funds rate​ target?

Business
1 answer:
shutvik [7]2 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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DeMarcus has been general manager of the Surf and Turf Club restaurant for many years and always schedules extra staff for the b
Keith_Richards [23]

Answer:

illusion of control.

Explanation:

The illusion of control is the tendency for people to overestimate their ability to control events; for example, it occurs when someone feels a sense of control over outcomes that they demonstrably do not influence.

In the scenario, although Business has been consistently slow on Fridays in recent months, yet DeMarcus decides to continue with the extra staffing.

This is obviously a case of illusion because he has no control over the external business environment and there is no logical reason to continue with extra staffing.

3 0
3 years ago
New Business is just being formed by 10 investors, each of whom will own 10% of the business. The firm is expected to earn $500,
Triss [41]

Answer:

additional income is $11050  if the business is organized as a partnership rather than as a corporation

Explanation:

given data

investors = 10

own = 10%

earn =  $500000

corporate tax rate = 34%

personal tax rate = 35 %

to find out

How much additional spendable income

solution

we find here first income if formed as corporation in hand  that is

income if formed as corporation = earn × own ( 1 -  corporate tax ) × ( 1 - personal tax )

income if formed as corporation = 500000 × 10% ( 1 - 34% ) × ( 1 - 35% )

income if formed as corporation =$21450

and

income will be taxable if form partnership that is

income if formed partnership = earn × own ( 1 - personal tax )

put here value

income if formed partnership = 500000 × 10% ( 1 - 35% )

income if formed partnership = $32500

so

additional income is $32500 - $21450

additional income is $11050

4 0
3 years ago
A firm is considering the acquisition of a new machine. The base price is $85,000 and it would cost $15,000 to install. The mach
Naddik [55]

Answer:

Cash flow year 0   (110,000)

or in other way to express it: a cashoutflow for $110,000

Explanation:

Initial net cahs outflow

this will be the acquisition of the machine cost plus the increase in the working capital for the company

machine cost: all cost necessary for acquire the machien and get it operational

supplier list price        85,000

installation cost       <u>    15,000</u>

total cost                     100,000

Increase in Working Capital Cost 10,000

As these are cost they are negative so we have a cashouflow

Total cashflow    (110,000)

4 0
3 years ago
Does a business neceşsarily have obligations to anyone<br> besides stockholders?
Marina CMI [18]

Answer:

of course. Business have obligations and duties towards many parties. we call these people "stake holders". in other words, they are either interested in the business and activities or are effected by the business activities.

for an example, the community and the environment the business operates in are stakeholders and the firm has responsibility to ensure an environmental friendly production and practices are carried out by the firm.

Government and tax authorities are another example. firm has to make sure that the required disclosures are made and proper taxes are paid timely.

Potential investors are another example, the company has to make sure that they disclose all the relevant and material information that may give signals about the companies future and its direction.

Explanation:

8 0
3 years ago
Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
Artemon [7]

Answer:

B

Explanation:

8 0
3 years ago
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