Answer:
The Fed should decrease the real federal funds rate by 0.5%
Explanation:
The formula according to Taylor can be expressed as;
N=I+R+0.5(I-I*)+0.5(Y-Y*)
where;
N=nominal fed fund rate
I=inflation rate
R=real federal fund rate
I*=target inflation rate
Y-Y*=output gap
In our case;
N=4%=4/100=0.04
I=2%=2/100=0.02
R=unknown=R
I*=assume 2%=2/100=0.02
Y-Y*=-3%=-3/100=-0.03
replacing;
0.04=0.02+R+0.5(0.02-0.02)+0.5(-0.03)
0.04=0.02+R+0-0.015
0.04=R+0.005
R=0.04-0.005=0.035
Change=R-N
Change=0.04-0.035=0.005
The Fed should decrease the real federal funds rate by 0.5%
Answer:
$1,200 was subject to income tax is the correct answer.
Explanation:
If a policy change causes a Pareto improvement, is the outcome necessarily Pareto efficient if a policy change causes a Pareto improvement, then the outcome is not necessarily Pareto efficient this is because another change in the policy could cause another Pareto improvement.
A Pareto development is a development of a device whilst an alternative in the allocation of goods harms no person and advantages as a minimum one character. Pareto enhancements also are called "no-brainers" and are generally predicted to be rare, due to the plain and effective incentive to make any available Pareto development.
Factors that lie within the PPF display an inefficient or below-usage of resources – this is Pareto inefficient. A Pareto development way that output of both products can increase as we move from inside the PPF to factors at the PPF boundary.
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According to the "adapting to change" box, the professional that is best able to detect the financial irregularities that often accompany fraud in an organization is Control process.
<h3>What is control process?</h3>
Controlling involves assessing the performance of a company and modifying the financial performance.
This is done for credibility and to meet the company's objectives, goals and plans.
Control process serves as yardstick to which the goal of business or company is achieved. Managers of company engage in control process.
Therefore, According to the "adapting to change" box, The professional that is best able to detect the financial irregularities that often accompany fraud in an organization is Control process.
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Smaller: -3, -4, -5, -6, -7.
bigger: -1, 0, 1, 2, 3
