Monarchy is what South Korea established
Answer:
correct option is D raise the fed funds rate by 0.5% if inflation rises 1% above its target of 2%
Explanation:
solution
Taylor Rule is invented in 1992 and it is interest rate forecasting model
As the product of John Taylor Rule is the 3 number
- interest rate
- inflation rate
- GDP rate
and Taylor rule is that when GDP is equal to potential GDP and inflation rate is at its target rate of 2%
and the federal funds target rate should be 4%
so we can say here correct option is D raise the fed funds rate by 0.5% if inflation rises 1% above its target of 2%
Everything else held constant, an increase in planned investment expenditure <u>increases</u> aggregate <u>demand</u>.
Investment definition is an asset acquired or invested in to build wealth and save money from the hard-earned profits or appreciation. Investment which means is normally to reap an extra source of earnings or gain profit from the investment over a specific period of time.
Making an investment is an effective manner to put your money to work and potentially build wealth. Clever investing may allow your money to outpace inflation and increase in value. The greater growth potential of investing is primarily due to the power of compounding and the risk-return tradeoff.
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