John Taylor's thumb rule is based on the notion that in order to assist the economy, it is necessary to produce at potential output, central banks are willing to tolerate <u>Positive rate of inflation</u>.
<h3>The Taylor Rule define as:</h3>
The Taylor Rule is a rule that ties a central bank's policy rate to inflation and economic growth. It was developed in 1993 by economist John Taylor and posits an equilibrium federal funds rate 2% higher than the yearly inflation rate.
<h3>What is rates of inflation?</h3>
Inflation is defined as an increase in the prices of goods and services purchased by households. It is calculated as the rate of change of such prices. Prices usually rise over time, but they can also fall (a situation called deflation).
<h3>Describe central banks: </h3>
A central bank, reserve bank, or monetary authority is an institution that manages a state's or formal monetary union's currency and monetary policy as well as its commercial banking system. In contrast to a commercial bank, a central bank has a monopoly on raising the monetary base.
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Answer:
A : balance sheet only
Explanation:
In the given question, the truck was purchased on credit and the truck is a fixed asset that comes under the balance sheet only because in the income statement, the expenses and revenues are recorded whereas retained earnings records profit which is left to the company.
So, it affects the balance sheet only. As balance sheet records all types of assets and all types of liabilities plus shareholder equity.
Answer:
A. 4.3 batches
B. 215 parts
C. 3 batches
D. 184 parts
Explanation:
Please find explanation attached
