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topjm [15]
3 years ago
6

If the Federal Reserve tries to target inflation near 2%, the inflation rate is 2.1%, and output is 4% below potential GDP, the

target federal funds rate according to the Taylor rule is
Business
1 answer:
bonufazy [111]3 years ago
5 0

Answer:

0.95%

Explanation:

Taylor's rule formula is as follow:

Target rate = Neutral rate + 0.5 x (Expected GDP growth rate - Long-term GDP growth rate) + 0.5 x (Expected Inflation rate - Target inflation rate)

The neutral rate is not given in the question. So let's assume that neutral rate is = 3%

--> Target rate = 3% + 0.5 x (-4%) + 0.5 x (2% - 2.1%)

--> Target rate = 1% - 0.05% =  0.95%

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Couurtney bought a shirt for $24. with a coupon for 25% off. what was the original price of the shirt before the discount
kiruha [24]
Let the original price be x.

then,

x- 25% of x= 24
x- 25x/100 = 24
x-   x/4=24
3x/4=24

3x= 96

x= 32

in short...the original price= 32 dollars

3 0
3 years ago
Which important biochemical process receives a supply of nad ions from the fermentation process during anaerobic respiration?
Alexxandr [17]

Answer:

Glycolysis

Explanation:

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2 years ago
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zaharov [31]

Answer:

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3 years ago
In the confirmation of accounts receivable, the auditor will most likely
crimeas [40]

Answer:

A. Request confirmation of a sample of the inactive account.

Explanation:

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6 0
4 years ago
Suppose you are talking to both a recent college graduate who does not have much money in his budget for retirement savings and
Readme [11.4K]

Explanation:

Retirement advice to college graduate:

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