All categories

3 years ago

Based on the Taylor Rule use the following information to calculate the target federal funds rate.

Business

1 answer:

Gnesinka [82]3 years ago

4 0

Answer:

8.0 %

Explanation:

inflation gap = 3 - 2 = 1

=3 + 2 + (.5 x 1) + (.5 x 5)

= 8.0

You might be interested in

The following errors took place in journalizing and posting transactions:

yuradex [85]

Answer:

<u>Journal 1</u>

Debit : Prepaid Expense $37,600

Credit : Cash $18,800

Credit : Insurance Expense $18,800

<u>Journal 2</u>

Debit : Dividends $18,000

Credit : Wages $18,000

Explanation:

Journal 1

The first error has to be corrected by debiting the Prepaid Expenses by twice the amount paid to cancel the effect of a credit entry made to that account. Cash is credited to show the correct credit entry that was supposed to be made. Insurance expense is credited to cancel the debit entry made to this account in error.

Journal 2

The error made is called error of principle. This is were the transaction is recorded in the wrong class of accounts. Simply, Debit the Dividends and credit the Wages Account to record and reverse the error out of the Wages Account into the Dividends Account.

6 0

2 years ago

According to ______________, stock prices react instantaneously, completely and accurately to all publicly available information

Lelu [443]

Answer:

Theory of Efficient markets

Explanation:

According to this theory stock prices react instantaneously to new information

4 0

2 years ago

A company had net income of $252,327. Depreciation expense is $21,821. During the year, Accounts Receivable and Inventory increa

Anettt [7]

Answer: Option (d) is correct.

Explanation:

Given that,

Net Income = $252,327

Depreciation expense = $21,821

Accounts Receivable increased by = $14,346

Inventory increased by = $33,617

Prepaid Expenses decreased by = $3,079

Accounts Payable decreased by = $4,161

Loss on the sale of equipment = $5,398

Operating Income = Net Income + Depreciation expense - Accounts Receivable - Inventory + Prepaid Expenses - Accounts Payable + Loss on the sale of equipment

= $252,327 + $21,821 - $14,346 - $33,617 + $3,079 - $4,161 + $5,398

= $230,501

7 0

3 years ago

Automated retailing occurs when a consumer goes into a store to learn about different brands and products and then searches the

Grace [21]

Answer:

False

Explanation:

The scenario described above is called Showrooming, where customers just go to a store to find out about various products. They do not buy and look for alternative cheap options.

On the other hand, automated retailing occurs when products are stored in a machine that can dispense to customers.

An example is a soda vending machine.

5 0

2 years ago

Which of the following statements concerning consumption is incorrect? Group of answer choices Wealthy people consume more than

Liono4ka [1.6K]

Answer:

Savings rates decrease as income increases.

Explanation:

Consumption can be defined as the use of goods and services by the household or end users.

The true and correct statements about consumption are;

1. Wealthy people consume more than other people.

2. Expectations about future prices affect consumption.

3. Tax increases reduce consumption.

The incorrect statement concerning consumption is that, savings rates decrease as income increases because an increase in income generally result in an increase in savings rates.

3 0

2 years ago