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Viktor [21]
3 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]3 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

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Say a certain manufacturing industry has 63.1 thousand jobs in 2008, but is expected to decline at an average annual rate of 1.7
ss7ja [257]

Answer:

so correct option is  b. -27%

Explanation:

given data

job manufacturing industry = 63.1 thousand

annual rate = 1.7 thousand

time period = 10 year

solution

the total loss of jobs over the 10 years will be:

total loss = 1.7 × 10

total loss = 17  thousand jobs

so that the percent change will be

percent change  =  \frac{-17}{63.1}\times100

percent change  =  -27 %

so correct option is  b. -27%

5 0
3 years ago
Read 2 more answers
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siniylev [52]

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Answer:

Option D. Lowballing Strategy

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8 0
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Which system of job evaluation is being used when cards that list the duties and responsibilities of the job are arranged by rat
trasher [3.6K]
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All investment strategies do involve some level of risk. Considering the evidence at my disposal, the first investment is made in the investment opportunity that is most likely to be fake.

The real dangers of investing with this company are those associated with land, stocks, goods, or legal disputes.

What potential profits may I expect from my investment?

The investment's projected return, or what we refer to as the potential return, has the potential to generate significant profit or loss.

Keep in mind that it is regarded as a type of computed metric that enables investors to determine the possible profit an investment may receive; in the example above, it may result in greater profit or loss.

Learn more about investments here;

brainly.com/question/28761792

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5 0
1 year ago
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Answer:

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Explanation:

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