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3 years ago

Explain the Taylor Rule

Business

1 answer:

Arisa [49]3 years ago

6 0

Explanation:

Ok so the Taylor Rule is one kind of targeting monetary policy rule of a central bank. The Taylor rule was proposed by the American economist John B. Taylor in 1992, who is currently the George P.Shultz Senior Fellow In Economics at and the director of Standford’s Introductory Economics Centre.

Also the Taylor Rule suggests that the Federal Reserve should raise rates when inflation is above target or when gross domestic product (GDP) growth is too high and above potential. It also suggests that the Fed should lower rates when inflation is below the target level or when GDP growth is too slow and below potential.

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Company X issues variable-rate debt but wishes to fix its interest rates because it believes the variable rate may increase. Com

Gala2k [10]

Answer: c) a swap

Explanation:

A Swap is a type of Derivative that involves two parties exchanging the cash-flows or even liabilities that they are getting from their different instruments.

Traditionally, Swaps are usually for cash-flows based on debt instruments like bonds, but as a derivative, the underlying instrument can be anything in the financial market.

Company X and Y exchanging cash-flows is a Swap.

3 0

3 years ago

Describe a variable cost. Describe a fixed cost. Explain why the distinction between variable and fixed costs is important in co

Mama L [17]

Answer:

For the 1St question,

Total variable costs increase with increased production or sales volumes. Fixed costs are not influenced by fluctuations in production or sales volumes.

For the 2nd question,

Understanding whether a cost behaves as a variable or a fixed cost is essential to estimating and planning for business success.

Explanation:

The main difference between the fixed and variable cost is the way it is affected by the production capacity. Variable cost increases as more u it's are produced while.fixed cost remains constant as it is not related with units.

Moreover, Understanding and differentiating fixed and variable costs are important to categorize costs correctly for accounting purposes and to decide what sort of strategies must be implemented.

3 0

3 years ago

True or false Decentralization refers to the degree to that decision making is concentrated to the top of the organization

MatroZZZ [7]

Decentralization refers to the degree to that decision-making is concentrated to the top of the organization: False.

<h3>What is a decentralized organization?</h3>

In a decentralized organization, the decision-making authority and power isn't concentrated at the top level (echelon) of the organization.

This ultimately implies that, decentralization refers to the degree to that decision-making is concentrated to all the areas of an organization.

Read more on decentralization here: brainly.com/question/23818047

#SPJ1

8 0

2 years ago

Read 2 more answers

You are evaluating the following two investment opportunities:

siniylev [52]

The answer is project a

6 0

3 years ago

Feiler Corporation has total current assets of $493,000, total current liabilities of $357,000, total stockholders' equity of $1

Citrus2011 [14]

Answer:

The answer is C.

Explanation:

Current ratio shows the liquidity of of a company. This ratio tells us how a company or business is able to meet its short obligation.

This ration is very important to lenders because they use it to know of you will be able to meet the interest payment and principal

The formula for current ratio is:

Current assets/current liabilities

Total current assets is $493,000, Total current liabilities is $357,000

= $493,000/$357,000

=1.38

3 0

4 years ago