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liberstina [14]
3 years ago
5

Suppose the initial inflation rate and inflation target are both 2%, that the real federal funds rate is 2%, and that the econom

y is at the full employment level of output. According the Taylor Rule, the federal funds target should be . Suppose now that the inflation rate changes to 6%. The Taylor Rule now prescribes that the federal funds target should be
Business
1 answer:
Nuetrik [128]3 years ago
7 0

Answer:

a. 4%

b. 10%

Explanation:

1. Federal funds target = Real Federal funds rate + Inflation rate + 1/2( inflation gap) + 1/2(output gap)

Inflation gap = Current inflation - inflation target = 2% - 2% = 0

Economy is at full employment so output gap is 0.

= 2% + 2% + 1/2(0) + 1/2 (0)

= 4%

2. Federal funds target = Real Federal funds rate + Inflation rate + 1/2( inflation gap) + 1/2(output gap)

= 2% + 6% + 1/2(6% - 2%) + 1/2(0)

= 10%

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Below are transactions for Hurricane Company during 2021. a. On October 1, 2021, Hurricane lends $7,200 to another company. The
blondinia [14]

Answer:

ACCOUNT          

interest expense  144 debit

interest payable  144 credit

rent expense        1200 debit

prepaid expense  1200 credit

unearned revenue  4600 debit

rent revenue  4600 credit

depreciation expense  3700 debit

acc dep machine  3700 credit

salaries expense  3200 debit

salaries payable  3200 credit

supplies expense  2600 debit

supplies  2600 credit

Explanation:

Interest is calculate doing:

principal x rate x time

7,200 x 0.08 x 3/12 = 144

rent

1,800 for 3 months  there is 2 expired 1,800 x 2/3 = 1,200

earned revenue on rent

11,040 x 5 monhts / 12 = 4,600

supplies:

beginning + purchase - ending = consumed supplies

600 + 3,700 - 1,700 = 2,600

6 0
3 years ago
Suppose that market demand is Q = 660 – 12P and marginal cost is MC = 5. The consumer surplus in a perfectly competitive market
Ad libitum [116K]

Answer: 15000; 3750

Explanation:

From the question,

Q = 660 – 12P

MC = 5

The consumer surplus in a perfectly competitive market will be:

P = MC

Therefore, P = 5

Q = 660 - 12P = 660 - 12(5) = 660 - 60 = 600

Consumer surplus = 1/2 × (55 - 5) (600)

= 1/2 × 50 × 600

= 15,000

For monopoly, MR = MC

Total Revenue = P × Q

Since Q= 660 - 12P

P = (660 - Q)/12

TR = P × Q

= (660 - Q)/12 × Q

= (660Q- Q²)/12 × Q

MR = (660 - 2Q)/12

MR = MC

(660 - 2Q)/12 = 5

(660 - 2Q) = 5 × 12

660 - 2Q = 60

2Q = 660 - 60

2Q = 600

Q = 600/2

Q= 300

Since P =(660 - Q)/12

= (660 - 300)/12

= 360/12

= 30

Consumer surplus = 1/2 × (55 - 30) (30)

= 1/2 × 25 × 300

= 3750

Therefore, the answer is 15000; 3750

7 0
3 years ago
A group of university students toys coconuts from farmers' markets. The students consume the meat of the coconuts for food and u
Karo-lina-s [1.5K]

Answer: The free- rider problem

Explanation:

 The free-rider problem is one off the type of economical issue that cause the market failure problem due to the unsystematic distributing of the various types of goods resources and also the services.

This type of problem is basically occur due to the overuse or degradation of the products and the resources.

According to the given question, the free rider problem is one of the example that best illustrating the given scenario. The main cause of the free rider problem is due to the unequal use of the resources and also the public goods without paying for their particular share.  

 Therefore, The free-rider problem is the correct answer.

7 0
3 years ago
The second stage of the consumer buying process is?
zubka84 [21]
Well i suppose the second stage involves the information search of the consumer buying process.<span />
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3 years ago
In accounting, currency, coins, checks, money orders, and funds on deposit in a bank are recorded in?
Dafna1 [17]

In accounting, currency, coins, checks, money orders, and funds on deposit in a bank are recorded in cash.

<h3>What is cash in a bank in accounting?</h3>
  • Cash in Bank refers to the current balance in checking or savings accounts or other accounts of a similar nature held in the name of the company or business requesting the certificate. Do not include amounts from personal bank accounts or retirement accounts.
  • Every month, the bank will normally send the account holder an official bank statement that lists all of the transactions that occurred on the account that month. Account information can be found on bank statements, including account numbers and a thorough list of deposits and withdrawals.
  • There are three different forms of accounting transactions based on the exchange of money: cash transactions, non-cash transactions, and credit transactions.

In accounting, currency, coins, checks, money orders, and funds on deposit in a bank are recorded in cash.

To learn more about bank accounts, refer to:

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8 0
1 year ago
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