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Kisachek [45]
3 years ago
5

The Taylor rule specifies how policymakers should set the federal funds rate target. Suppose that U.S. real GDP rises 1% above p

otential GDP, all else constant. According to the Taylor rule, the Fed should the federal funds rate target by __________ . Suppose instead that the U.S. inflation rate rises by 1%, all else constant. According to the Taylor rule, the Fed should the federal funds rate target by _____________.
Business
1 answer:
VladimirAG [237]3 years ago
6 0

Answer:

FED raise the federal funds rate target by 0.5%

FED raise the federal fund rate target by 2%

Explanation:

Taylor Rule states that Federal Funds should raise rates when inflation rises. When Gross domestic products growth of a country is high and above potential level then FED should raise rates. When inflation rises by 1% above target level then federal funds should raise FED by 2%.

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Margin of Safety Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $4
valina [46]

Answer:

Margin of safety - Units =3350

Margin of safety - Sales Revenue = $251250

Explanation:

Margin of Safety indicates how much sales may decrease before a loss can be made.

<u>Margin of safety - Units</u>

Margin of safety - Units = 5000-1650 =3350

<em>Margin of Safety as a % = 3350/5000 ×100 = 67%</em>

<u>Margin of safety - Sales Revenue</u>

Expected Sales = (5000 × $75) =$375000

Margin of Safety = $375000 × 67% = $251250

3 0
3 years ago
4. Which of the following is an example of ethical behavior by an inspector?
Viktor [21]
C refusing to share information
3 0
3 years ago
1. What is the difference between structural and cyclical unemployment? In this context, what is the difference between Europe a
Elis [28]

Structural Unemployment is one that is permanent or long lived and Cyclical Unemployment does not have enough demand in the economy.

Explanation:

Structural unemployment results with a permanent dislocations within markets and a mismatch between skills in growing company needs. When the overall goods and service in an economy cannot support full employment that results with Cyclical unemployment.

The difference between Europe and US is, US has 50 states under one country whereas Europe is a union between countries.

Krugman uses the tax savings to buy their own stock, The evidence is overwhelming.

7 0
3 years ago
At the beginning of the year, the Dallas Company had the following accounts on its books: Accounts Receivable $264,000 Debit All
lukranit [14]

Answer:

<u>Explanation:</u>

Requirement :

Date Account title and Explanation      Debit                      Credit

Dec.31   Accounts receivable                $2,346,000  

           Sales revenue                                                $2,346,000

[To record credit sales for the year]      

Dec.31 Cash                                    $2,350,000  

          Accounts receivable                                    $2,350,000

[To record collections on account for the year]      

Feb.17 Allowance for doubtful account    $7,500  

           Accounts receivable-R.St. John               $7,500

[To write off R. St. John's account]      

May 28 Allowance for doubtful account   $4,800  

          Accounts receivable-G. Herberger               $4,800

[To write off G. Herberger's account]      

Oct 13 Accounts receivable-G. Herberger $1,200  

            Allowance for doubtful account                 $1,200

[To reinstate G. Herberger's account for partil recovery]      

Oct 13 Cash                                                  $1,200  

              Accounts receivable-G. Herberger           $1,200

[To record collection from G. Herberger]      

Dec 15 Allowance for doubtful account $5,000  

                Accounts receivable-R. Clancy                 $5,000

[To write-off R. Clancy's account]      

Dec 31 Bad debt expense [$2,346,000 x 0.8%] $18,768  

                Allowance for doubtful account                  $18,768

[To record allowance for doubtful accounts]  

<u>Requirement b: </u>

Accounts Receivable $242,700

Less: Allowance for Doubtful accounts $19,168

Accounts receivable net $223,532

<u>Calculations: </u>

T-Accounts

Accounts receivable              Allowance for doubtful account

$264,000 Beg.                                    $16,500 Beg.

$2,346,000          $2,350,000  $7,500             $1,200

$1,200                       $7,500      $4,800                 $18,768

                               $4,800  $5,000  

                                $1,200    

                                 $5,000    

                                   $242,700 End.                 $19,168 End.

4 0
3 years ago
Knowledge Check 01 On March 1, a designer received a check for $7,500 from a customer for services to be provided after the cust
Yakvenalex [24]

Answer:

              The Designer Journal Entry

Date         General Journal                 Debit            Credit

July 31      Unearned Revenue            $7,500  

                Design Services Revenue                     $7,500

4 0
3 years ago
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