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labwork [276]
3 years ago
8

Using the Taylor rule, if inflation is 1 percent, desired inflation is 2 percent, and output is 2 percentage points below potent

ial, the Fed should target a federal funds rate of:
Mathematics
1 answer:
antoniya [11.8K]3 years ago
6 0

Answer:

1.5%

Step-by-step explanation:

According to the Taylor rule, the federal funds rate targeted by the Fed is:

FFR = 2+AI+0.5*(AI-DI)+0.5PD

Where AI is the actual inflation (1%), DI is the desired inflation (2%) and PD is the deviation from potential (2%):

FFR = 2+1+0.5*(1-2)+0.5*(-2)\\FFR=1.5\%

The Fed should target a federal funds rate of 1.5%.

You might be interested in
Given the equation P2 = A3, what is the orbital period, in years, for the planet Saturn? (Saturn is located 9.5 AU from the sun.
algol [13]

Answer: 29.28 years

Explanation:

From Kepler's third law the square of orbital period of revolving celestial body is proportional to the cube of semi -major axis from the body  it is revolving about.

P² =A³

Where, P is the orbital period in years and A is the semi-major axis in AU (Astronomical units)

It is given that, For Saturn, A = 9.5 AU. We need to find P

⇒P² = (9.5 AU)³

⇒P² = 857.38

⇒P = 29.28 years

Thus, the orbital period of Jupiter is 29.28 years around the Sun.

5 0
3 years ago
Can someone please help me this this??
Brrunno [24]

Answers:

bio = 258

sociology = 169

============================================================

Work Shown:

x = number of bio textbooks

y = number of sociology textbooks

x+y = 427 books sold total

y = x-89 since 89 less sociology textbooks were sold compared to bio

Apply substitution to get the following

x+y = 427

x+x-89 = 427 ... replace y with x-89

2x-89 = 427

2x = 427+89

2x = 516

x = 516/2

x = 258 bio textbooks were sold

y = x-89

y = 258-89

y = 169 sociology textbooks were sold

5 0
1 year ago
-12 + 45<br> 25 + -77<br> Theres more in pic
miv72 [106K]

Answer

|-12|+|45|=|12|+|45|= 12+45=57

Step-by-step explanation:

When you take the absolute value of a negative number it is the same thing as taking as a positive number. The absolute value is just that number. Once you teach the absolute value of each number perform the operation given In the problem.

3 0
3 years ago
A bag of apples weighs 7 2/7
photoshop1234 [79]

Answer:

43.71428571

Step-by-step explanation:

First, convert 7 2/7 into an improper fraction: 51/7

Second, multiply 51/7 by 5: 255/7

Third, add 255/7 and 51/7 to get 306/7

306/7 = 43.71428571

6 0
2 years ago
What is the opposite of addition?<br> what is the opposite of division?
LenaWriter [7]
Subtraction 
multiplication 
yayyyyyyyyyyy
8 0
2 years ago
Read 2 more answers
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