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3 years ago

According to the Taylor rule, if inflation has risen by 6 percentage points above its target of 2 percent, the Fed should:_____.

Business

1 answer:

Olenka [21]3 years ago

5 0

Answer:

b. raise the real federal funds rate by 2 percentage points.

Explanation:

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Anyone help me pls it’s due tomorrow

aalyn [17]

Answer:

But what is the question

3 0

2 years ago

Read 2 more answers

You are given the following information for Ted’s Dread Co.: sales = $82,000; costs = $57,700; addition to retained earnings = $

vazorg [7]

Answer:$6,843.33=Depreciation

Explanation:

To Calculate the depreciation expense for the company

Net income = Dividends + Addition to retained earnings

Net income = $3,320 + 7,500

Net income = $10,820

Also,

Net income = Taxable income - (Taxable income)(Tax rate)

Net income = Taxable income(1 - Tax rate)

Therefore,

Taxable income = Net income / (1 - Tax rate)

Taxable income = $10,820 / (1 - 0.25

Taxable income = $10,820/0.75 =14,426.67

But

EBIT -interest = taxable income,So

EBIT = Taxable income + Interest

EBIT = $14,426.67+3,030

EBIT = 17,456.67

EBIT = Sales - Costs - Depreciation

$17,456.67 = $82000 - 57,700 - Depreciation

$17,456.67= 24,300-Deprecistion

Depreciation =24,300-17456.67 =

$6,843.33

4 0

3 years ago

On October 1, 2018, Swifty Company places a new asset into service. The cost of the asset is $125000 with an estimated 5-year li

Novosadov [1.4K]

Answer:

The book value of the plant asset on the December 31, 2018 is $75,000.

Explanation:

Determine the depreciable cost,

The depreciable cost = Acquisition cost - Salvage value.

The depreciable cost = 125,000 - 30,500.

The depreciable cost = $94,500.

Determine the annual depreciation expense,

The annual depreciation expense = depreciable cost/useful life

The annual depreciation expense = 94,000/5

The annual depreciation expense = $18,900.

Find the % rate of depreciation .

The % rate of depreciation = (18,900/94,500) × 100.

% rate of depreciation = 20%

Since it is the double-declining-balance method of depreciation we multiply the % rate by 2 = 20% × 2 = 40%

Applying the rate to the carrying value of the asset to obtain current year's depreciation expense.

Current year's depreciation expense = Carrying value of the asset × the depreciation rate %.

Current year's depreciation expense = 125,000 × 40%.

Current year's depreciation expense = $75,000

4 0

3 years ago

A conceptualization the firm as an "activity system" is a means of depicting: A. The extent to which a management is motivated t

tia_tia [17]

Answer:

D. Consistency among a firm’s activities.

Explanation:

Conceptualisation is the process by which an enterpreneur writes out concepts that will later make up the basis of the business model.

These concepts ensures uniformity in the activities of the business.

For example he can decide to break down business activities into 3 departments.

4 0

3 years ago

The opportunity cost of producing corn in New Zealand is approximately tons of millet, and the opportunity cost of producing cor

BartSMP [9]

Answer:

2 tons of millet for New Zealand and 3 tons of millet for Brazil.

Explanation:

New Zealand and brazil both can produce corns and millet. The opportunity cost for Brazil is more than the New Zealand. Both the countries should go towards the production of the crop in which they have comparative advantage. New Zealand has comparative advantage in producing millet and Brazil has comparative advantage in producing corn.

5 0

3 years ago