Which of the following is a likely way the cost of living in another country

To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors the ________; to determine whet

Kay [80]

Answer:

Core PCE deflator inflation rate;

the Output gap

Explanation:

Goals of Monetary Policy

There are several goals of monetary policy. They includes maximum employment, stable prices, and moderate long-term interest rates. Usually in the long run, the above goals works in harmony and empower each other, but in the short run, they might be in conflict. The main goal of this policy is price stability as it is the source of maximum employment and moderate long-term interest rates.

The Fed has two possible instruments:they includes;

1. Monetary base

2. Federal funds rate

Output Gap

When this gap is positive, an inflationary gap, the inflation rate increases drastically or accelerate. This will make the Fed to consider raising the federal funds rate. It is said that If the output gap is negative, a recessionary gap, inflation might ease. Thereby making the Fed to consider lowering the federal funds

The Stables Prices Goal

The Fed do put close attention to the CPI removing fuel and food which is the core CPI. The rate of increase in the core CPI is simply termed core inflation rate. The Fed do believes that the core inflation rate provides a better measure of the underlying inflation patterns and a better prediction of future CPI inflation.

5 0

3 years ago

June Tandy is covered under a SIMPLE IRA at Barker Jones Auction House, where she is employed. This year, no salary deductions o

Bond [772]

The answer should be True

5 0

3 years ago

Read 2 more answers

An Indian Food Truck is considering a new tandoori oven in which to bake naan. Tandoor A can handle 22 naan in an hour. The fixe

Veseljchak [2.6K]

Answer:

24 dollars

Explanation:

ΔABC ~ ΔEFD

is the pyramid change of the mathametical dad monet

7 0

3 years ago

For each employee, you are required to pay 1.45% federal Medicare tax and 6.2% federal Social Security tax. If an

Gekata [30.6K]

Answer:

A) $1,912.50

Explanation:

Both the federal Medicare tax and federal social security taxes are calculated based gross pay.

The medicare tax will be

=1.45% of $25,000

= 1.45/100 x $25,000

=0.0145 x $25,000

=$362.5

Social security tax will be

=6.2/100 x $25,000

=0.062 x $25,000

=$1,550.00

Total taxes = $1550.00 + $362.50

=$1,912.50

8 0

3 years ago

Being Human, Inc., recently issued new securities to finance a new TV show. The project cost $14.6 million, and the company paid

Anna11 [10]

Answer: 1.6631

Explanation:

The company’s target debt-equity ratio will be calculated thus:

Let's assume x = equity

Let's assume (1-x) = debt

Total funds needed = $14,600,000 + $785,000 = $15,385,000

Then, we calculate the flotation which will be:

15,385,000 × (1 - f) = 14,600,000

15,385,000 - 15,385,000f = 14,600,000

-15,385,000f = 14,600,000 - 15385000

- 15,385,000f = -785,000

f = -785000 / -15385000

f = 0.05102

Then,

(7.6% × x) + (3.6% × 1-x) = 0.05102

(0.076 × x) + (0.036 × 1-x) = 0.05102

0.076x + 0.036 - 0.036x = 0.05102

0.076x - 0.036x = 0.05102 - 0.036

0.04x = 0.01502

x = 0.01502/0.04

x = 0.3755

Equity = 0.3755 = 3.755%

Debt = 1-x = 1 - 0.3755 = 0.6245

Debt equity ratio = Debt / Equity

= 0.6245/0.3755

= 1.6631

The debt-equity ratio is 1.6631.

8 0

3 years ago