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Amiraneli [1.4K]
2 years ago
15

Suppose that actual inflation is 3 percent, the Fed's inflation target is 2 percentage points, and unemployment rate is 3 percen

t (which is 1 percent below the Fed's full-employment target of 4 percent). According to the Taylor Rule, what value will the Fed want to set for its targeted interest rate
Business
1 answer:
Dahasolnce [82]2 years ago
5 0

The government would set its targeted interest at 6.5%

Based on the Taylor's rule

R = π + A + 0.5(A-A*) + 0.5

This is the formula that helps to get the output gap

<u>Definition of terms</u>

R is the nominal federal funds rate

π is the real rate of federal funds = 2%

A is the rate of inflation

A* is the target of of inflation = 2%

Rate of unemployment = 3%

The government has a target of full employment that is at 4 percent.

When we enter the values into the formula

R = 2% + 3% + 0.5(3%-2%) + 0.5%(2%)

= 5% + 0.5% + 1%

= 6.5%

Therefore the government would set its targeted interest at 6.5%

Read more on brainly.com/question/14466278?referrer=searchResults

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. The start of noncritical activities are delayed beyond their earliest start times (but not beyond their latest start times) in
ozzi

The correct answer is D) maintain a uniform level of required resources.

The start of noncritical activities is delayed beyond their earliest start times (but not beyond their latest start times) in order to maintain a uniform level of required resources.

That is why companies have to establish their priorities and identify the main activities that must be accomplished on time, the people responsible to accomplish the activity, and the resources needed to successfully do so. Noncritical activities can be delayed up to a point, but the critical activities have to be followed according to the schedule.

7 0
2 years ago
The current asset section of Stibbe Pharmaceutical Company’s balance sheet included cash of $34,000 and accounts receivable of $
Alexxandr [17]

Answer:

Ending balance in inventory= $22,000

Current liabilities= $88,000

Explanation:

The current assets section of stibblr pharmaceutical company included cash of $34,000 and accounts receivables of $54,000

The company's current ratio is 2.5

The acid test ratio is 2.0

Acid test ratio = cash + account receivables /current liabilities

2.0= ($34,000+$54,000)/current liabilities

2.0= 88,000/current liabilities

Current liabilities = 88,000/2

= $44,000

Current ratio= cash + account account receivables + inventory /current liabilities

2.5= $34,000+$54,000 + inventory/$44,000

2.5= $88,000+Inventory /44,000

2.5×44,000= 88,000 + inventory

110,000= 88,000 + Inventory

Inventory = $110,000-88,000

= $22,000

Hence the current liabilities is $88,000 and inventory is $22,000

3 0
3 years ago
Loretta went to a store to buy thermal underwear. The underwear had been featured in an advertisement for $24.99 a pair. She was
sweet [91]

Answer:

are there no answer choses maybe stress problem solving

Explanation:

3 0
3 years ago
Machinery purchased for $150,000 by Tom Brady Co. in 2010 was originally estimated to have a life of 12 years with a salvage val
Phoenix [80]

Answer:

$7,312.50

Explanation:

The computation of the depreciation expense for 2017 is shown below:

Book Value is

= Cost - Accumulated Depreciation

= $150,000 - {[($150,000 - $24,000) ÷ 12 ] × 7y}

= $150,000 - [($126,000 ÷ 12 ) × 7]

= $150,000 - ($10,500 × 7)

= $150,000 - $73,500

= $76,500

Now the depreciation expense for 2017 :

= ($76,500 - $18,000) ÷ (15 - 7) years

= $58,500 ÷ 8 years

= $7,312.50

5 0
2 years ago
Julie Convenience Store sold merchandise for cash to a customer, and recorded a debit to Cash for $371, which included a 6% Sale
nlexa [21]

Answer:

C) credit Sales Tax Payable for $21

Explanation:

Based on the information given In the same transaction, they must also CREDIT SALES TAX PAYABLE FOR $21 Calculated as:

First step is to calculate the sales tax element

Sales tax element = $371*6/106

Sales tax element= $21

Now let calculate what the Price exclusive of sales tax would be

Price exclusive of sales tax=$371-$21

Price exclusive of sales tax= $350

The correct journal entry should be:

Dr Cash $371

Cr Sales revenue $350

($371-$21)

Cr Sales tax payable $21

3 0
3 years ago
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