Answer:
1.5%
Step-by-step explanation:
According to the Taylor rule, the federal funds rate targeted by the Fed is:
Where AI is the actual inflation (1%), DI is the desired inflation (2%) and PD is the deviation from potential (2%):
The Fed should target a federal funds rate of 1.5%.
9514 1404 393
Answer:
a. 405
b. -2
c. 5
d. 43
Step-by-step explanation:
I don't like doing arithmetic any more than you do, so I let a calculator do it for me. A spreadsheet works well for this, too. The function values are shown in the attachment.
Put the function argument where the variable is and do the arithmetic.
a. h(4) = 5·3^4 = 405
b. d(2) = 7 -9(2 -1) = -2
c. h(0) = 5·3^0 = 5
d. d(-3) = 7 -9(-3 -1) = 43
