1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Viktor [21]
2 years ago
5

Suppose the equilibrium real federal funds rate is 3 percent, the target rate of inflation is 3 percent, the current inflation r

ate is 1 percent, and real GDP is 8 percent below potential real GDP. If the weights for the inflation gap and the output gap are both 1/2, then according to the Taylor rule the federal funds target rate equals :_______
A) -3 percent.
B) -1 percent.
C) 3.5 percent.
D) 7 percent
Business
1 answer:
Tresset [83]2 years ago
6 0

Answer:

B) -1 percent.

Explanation:

The computation of the federal fund target rate should be given below;

= Real federal fund rate + current inflation rate + (-current inflation rate - real GDP) + 0.5 real GDP

= 3 + 1 + (-1 - 8) + 0.5 × 8

= 4 - 9 + 4

= -1 percent

Hence, the second option is correct

You might be interested in
The par value of a stock:
SCORPION-xisa [38]

Answer:

A) is used to determine minimum legal capital balances at issuance

Explanation:

The par value of stock represents the minimum amount that must be paid per share. Par value is also referred as the Face Value or Nominal Value of common stock.  The Par Value of common stock is  derived by Par value per share * No. of Issued Shares.

8 0
3 years ago
Under _________dividend reinvestment plan, the company gives any cash dividends that investors would have received in a bank, wh
ankoles [38]

Answer:

Old Stock

Explanation:

The Dividend Reinvestment Plan is a platform where investors or shareholders in a company, reinvest the dividends they gained into more shares sold by the same company, most times without having to pay commissions.

Under the <em>Old stock dividend reinvestment plan, </em>an outside trustee, that is, a member of the board who is not an officer in the company, repurchases the company's existing shares in the stock market and then allocates the shares purchased among the stockholders. They sell the shares at market price. Most times, in order to encourage shareholders participation the company making the repurchase takes care of the commission fees.

8 0
2 years ago
Kingbird, Inc. has the following information available for accruals for the year ended December 31, 2019. The company adjusts it
Anton [14]

Answer:

a-Dec-31. Dr Utility expense   485

                    Cr   Utility bills payable  485

b-Jan-11.  Dr Utility bills payable  485

                        Cr Cash                   485

c-Dec-31. Dr Salary expense  3990

                Cr  Salary payable                3990

d-Dec-31. Dr bank 51600

                 Cr  Loan payable   51600

e-Dec-31 Dr Interest expense  215

                    Cr interest payable     215

f-Dec-31 Dr Account receivable  340

                  Cr   Service revenue  account    340

g-Dec-31. Dr Cash  6840

                 Cr Advance Rent    6840

Explanation:

a-Utility expense incurred for the m/o Dec will be paid in Jan.

c- Salaries of 3990 will be paid on Jan of 4 days.

e-Interest expense for the m/o Dec will be (51600*5%=2580/12=215.

f-The service fee is receivable which will be paid on Jan.

g- Advance rent is received from client.

7 0
2 years ago
Interview a business owner on this crisis experienced in the workplace
patriot [66]

There are several crises experienced by employees during recent pandemic. So, in an interview with a business owner regarding the crisis experienced, one can ask about how can businesses deliver better outcomes in times of a crisis.

<h3>What is an interview?</h3>

An interview is a meeting or a formal consultation at which information is obtained (as by a reporter, television commentator, or pollster) from a person.

It is a conversation in which you and an employer exchange information. The main features of the interview are conducted in the form of conversation, which is shaped by certain guidelines and questions between the researcher and the respondent. It is used in surveys and participant observation methods.

Learn more about interview here,

brainly.com/question/15128068

#SPJ1

7 0
1 year ago
Viet drives around and checks meters to document the amount of electricity used in homes. What Energy pathway is he a part of? E
Aloiza [94]

Answer:

he would be part of the energy distribution process

Explanation:

As Viet drives around and checks meters to document the amount of electricity used in homes since the electricity is distributed off  a power line into the house and then within the house by the wiring to the lights and the electrical outlets for usage by the inhabitants.

6 0
2 years ago
Read 2 more answers
Other questions:
  • Your car needs a new engine and it cost $1,000. you currently have $600 to invest at 7% compound annually, how long will you hav
    11·1 answer
  • The following data relate to labor cost for production of 3,600 cellular telephones: Actual: 2,430 hrs. at $14.5 Standard: 2,390
    5·1 answer
  • 3. Vegetables wilt or soften and their color intensifies as they
    5·1 answer
  • If the price elasticity of supply is 0.75, then when the price of Good Y falls by 10 percent, the quantity supplied of Good Y:__
    15·1 answer
  • HELP PLEASE. PLEAASEEEE
    14·2 answers
  • What is the office of management and budget primarily responsible for?
    14·1 answer
  • Dave has forty acres where he grows corn and soybeans. He also has five milk cows and some chickens. Dave sells organic milk and
    10·1 answer
  • 2. What has Calvina done wrong?
    10·1 answer
  • How much will a company's net operating income change if it undertakes an advertising campaign given the following data: Cost of
    9·1 answer
  • Consider the following for the costs of a pair of jeans: Direct material costs: $2 per yard and 3 yards are needed Direct labor
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!