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Elena-2011 [213]
2 years ago
13

if potential output declines while actual output remains unchanged, what does the Taylor rule imply that policymakers should do

to the fed funds rate
Business
1 answer:
Gekata [30.6K]2 years ago
4 0

Answer:

Increased

Explanation:

In the case when there is a fall in the potential output and at the same time the actual output remains the same so here the fund rate should be increased as per the taylor rule as it decrease the output that result in the output gap to fall

So as per the given situation, the fed fund rate should be increased

Hence, the same is to be increased

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Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua
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Answer:

Market Price $985.01

Explanation:

We have to convert the US semiannually rate to annually.

(1 + 0.078/2)^{2} -1 = 0.079521

Now this is the annual rate spected for a similar US Bonds

So we are going to calculate the present value using this rate.

Present value of an annuity of 78 for 20 years at 7.9521%

C * \frac{1-(1+r)^{-time} }{rate} = PV\\

78 * \frac{1-(1+0.079521)^{-20} }{0.079521} = PV\\

PV = 768.55

And we need to add the present value ofthe 1,000 euros at this rate

\frac{Principal}{(1 + rate)^{time} = Present Value}

\frac{1,000}{(1 + 0.079521)^{20} = Present Value }

Present Value = 216.4602211

Adding those two values together

$985.01

The reasoning behind this is that an american investor will prefer at equal price an US bonds because it compounds interest twice a year over the German Bonds.

6 0
3 years ago
Nikita is the manager of a local small hotel. Just today Nikita received word that a major convention will be coming to town nex
Ne4ueva [31]

Answer:

Contingency viewpoint or approach of management

Explanation:

According to the contingency viewpoint, there is no particular standard of management. Rather, the type of management style adopted including decisions made depends on the type of situation that the organization is facing at the particular time. Nikita in this scenario is using the contingency approach since she is making decisions based on the upcoming convention.

3 0
3 years ago
Anyone help me pls it’s due tomorrow
aalyn [17]

Answer:

But what is the question

3 0
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A profit center is evaluated by the rate of return earned on the investment allocated to the center. referred to as a loss cente
aliina [53]

Answer:

a responsibility center that incurs costs and generates revenues.

Explanation:

We know that

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Corporate social investment definition
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Definition: 

Contributions that bring benefits over and above those directly associated with the core business activities and events. These contributions can include monetary, employee time, employee resources, and gifts of any kind. 
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