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:
Decision-making skills
Explanation:
Decision making involves an objective comparison between alternatives to make a choice that improves an organization. The decision making skill is a trait that portrays proficiency in relating concepts to organizational goals.
Decision-making skills allow managers to make quick and accurate decisions. A marketing manager will correctly identify strategies to make a marketing campaign successful if they have good decision-making skills.
Answer:
<u>Transactions:</u>
1. June 1 Monthly invests $3, 910 cash in exchange for shares of common stock in a small welding business.
2. June 2 Purchases equipment on account for 340.
3. June 3 $760 cash is paid to landlord for June rent.
4. June 12 Bills P. Leonard $410 after completing welding work done on account.
<u>Journal Entries:</u>
1.
June 1 Dr. Cr.
Investment $3,910
Cash $3,910
2.
June 2 Dr. Cr.
Equipment $340
Account Payable $340
3.
June 3 Dr. Cr.
Rent Expense $3,760
Cash $3,760
4.
June 12 Dr. Cr.
P. Leonard (Receivable) $410
Welding Service Revenue $410
For a restaurant, some variable costs could be labor costs/ worker wages, raw product/ purchasing food to cook, and energy and fuel/ utilities.
