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Alexandra [31]
3 years ago
5

Using Taylor's rule, when the equilibrium real federal funds rate is 2 percent, there is no output gap, the actual inflation rat

e is zero, and the target inflation rate is 2 percent, the nominal federal funds rate should be Question 3 options: A) 0 percent. B) 1 percent. C) 2 percent. D) 3 percent.
Business
1 answer:
SCORPION-xisa [38]3 years ago
7 0

Answer:

B) 1%

Explanation:

Taylor's rule formula is as follow:

Target rate = Neutral rate + 0.5 x (Expected GDP growth rate - Long-term GDP growth rate) + 0.5 x (Expected Inflation rate - Target inflation rate)

--> Target rate = 2% + 0.5 x (0) + 0.5 x (0 - 2%)

  --> Target rate = 2% - 1% = 1%

Nominal federal funds rate should be 1%

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Masters, Inc., has sales of $37,900, costs of $15,000, depreciation expense of $2,400, and interest expense of $1,310. If the ta
I am Lyosha [343]

Answer:

Operating cash flow= $16,792.5

Explanation:

Giving the following information:

Masters, Inc., has sales of $37,900, costs of $15,000, depreciation expense of $2,400, and interest expense of $1,310.

<u>To calculate the operating cash flow, we need to use the following structure:</u>

Sales= 37,900

COGS= (15,000)

Gross profit= 22,900

Depreciation= (2,400)

Interest= (1,310)

EBT= 19,190

Tax= (19,190*0.25)= (4,797.5)

Depreciation= 2,400

Operating cash flow= 16,792.5

6 0
3 years ago
Transferable skills necessary for successful employment include
harkovskaia [24]

Answer:

Answer is option d i.e. all of the above.

Explanation:

Transferable skills are the skills or qualities that an individual has acquired through their learning processes in school, colleges, and life. These skills are those qualities that help an individual to land a successful job. Therefore, all three skills mentioned, which are basic skills, thinking skills, and personal qualities; above are included in transferable skills. Hence, the answer is option d.

8 0
3 years ago
Read 2 more answers
Scenario 13-6 Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As
marysya [2.9K]

Answer:

total cost of farming = $380

so correct option is d. $380

Explanation:

given data

cost of seeds = $130

Farmer Ziva charges = $25

time = 10 hours

solution

so total cost of farming is calculated as

total cost of farming = cost of seeds + opportunity cost

so put value

total cost of farming = $130 + ( $25 × 10 )

total cost of farming = 130 + ( 250 )

total cost of farming = $380

so correct option is d. $380

4 0
3 years ago
The issuer of a 5% common stock dividend to common stockholders should transfer from retained earnings to paid-in capital an amo
NISA [10]

Answer: A

Fair value of the shares issued.

5 0
3 years ago
On November 30, Year 1, Parlor, Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of S
zepelin [54]

Answer:

$275,000

Explanation:

Goodwill in business combination arises when the price paid in acquiring a business exceeds the fair value of the acquired business net assets . The fair value is used rather than the carrying amount to ensure fairness and an unbiased result

<u>Workings</u>

Purchase consideration = 250,000*15 =3,750,000

Percentage acquired = 100%

Fair value of net asset = 3,000,000+400,000+75,000= 3,475,000

Goodwill = 3,750,000=3,475,000 =275,000

6 0
3 years ago
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