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

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Answer 1

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

Definition of terms

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%

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Related Questions

Question Mode Multiple Choice Question When a company considers putting together a sales force, it may choose to hire salespeople directly or use ______. Multiple choice question. advertising executives manufacturer's representatives volunteers college students

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The company may choose to hire the salespeople directly or use the advertising executives to set up a sales force.

The advertising executives is like a party that acts as link between its principal and its clients

The advertising executives works for both the advertising firm and the clients that wishes to advertise through the firm.

Hence, the company may opt to hire an advertising executives so as to facilitate easy advertisement of its product on sales with the advertising firm.

In conclusion, the company may hire the salesperson and advertising executives.

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hidden figures, 9. What kind of accomplishment was it for Katherine and the workers of Langley for the Eagle to land safely during the Apollo mission on the surface of the moon

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Katherine Johnson was an African American woman that played a notable role in seeing American land on the surface of the moon during the Apollo mission. For Katherine and the workers at Langley, it was a momentous and groundbreaking achievement.

At a time in American history when blacks were being discriminated against and facing some other harsh realities, Katherine an intelligent mathematician contributed significantly to the Apollo mission.

In chapter 23 of Margot Lee Shetterly's book, "Hidden Figures," we see the deep sense of happiness and satisfaction that Katherine had in her ability to contribute to the success of that mission.

She was also grateful to her teachers who helped her to develop her knowledge of mathematics.

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Why can't two live as cheaply as one these days?

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Answer:

Hello ccraft89!

Based on this qualitative retrospective, I’d say “two can live as cheaply as one” has not been true for us, and it’s even possible that we have increased overall.  The saying that “two can live as cheaply as one”—at one time seriously suggested to couples hesitant to marry because of financial concerns—would produce only eye-rolls

-I Hope this helps Have an awesome day

~ Chloe Marcus <3

The saying "Two can live as cheaply as one" suggests that living expenses can be shared and reduced when two individuals are living together.

However, in contemporary times, there are several factors that can make it challenging for two people to live as cheaply as one. Here are a few reasons:

1. Housing Costs: Housing is typically one of the largest expenses for individuals or couples. While sharing a living space can help reduce costs compared to living separately, the overall cost of housing remains significant. Rent or mortgage payments, property taxes, utilities, and maintenance expenses are still substantial, regardless of the number of occupants.

2. Individual Expenses: Even when living together, individuals still have their own personal expenses, such as clothing, personal care items, transportation, healthcare, and entertainment. These expenses are separate and can add up, increasing the overall cost of living for a couple compared to an individual.

3. Lifestyle and Preferences: Each person may have different preferences and priorities when it comes to spending money. It can be challenging to align spending habits and find a balance that suits both individuals. Different interests, hobbies, or preferences for dining out, travel, or entertainment can contribute to higher overall expenses.

4. Inflation and Cost of Living: Over time, the cost of goods and services tends to increase due to inflation and changes in the economy. This can impact the overall cost of living for both individuals and couples. Expenses such as groceries, healthcare, education, and transportation may rise, making it more difficult for two people to live as cheaply as one.

5. Financial Responsibilities: Couples may have shared financial responsibilities, such as joint bills, debt obligations, or family commitments, that can increase the overall cost of living compared to an individual. These responsibilities can include supporting children, caring for aging parents, or other financial commitments that require additional resources.

While living together can certainly provide some cost savings through shared expenses, various factors contribute to the overall cost of living for both individuals and couples. The saying "Two can live as cheaply as one" may not hold true in modern times due to these factors and the complexities of managing individual and shared expenses.

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Name three valid reasons (termination for cause) an employee may be terminated from a job?

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Stealing drinking on the job and and charging people extra to keep the money

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units

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Answer:

$250.000

hope full this answer

Which accurately describe differences between debit and credit cards.

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Answer:

I did some research, and a debit card is a card that allows you to spend money on something that you got from the bank. Credit card is a card that allows you to borrow money from the card issuer. A credit card issuer is a bank or credit union that provides a credit card directly to the user. Kinda like a consumer. Anyways a credit card allow you to borrow money from the card issuer up to a certain limit in order to purchase items or withdraw cash. I didnt go of anyones word. All I did was do a little research, and this is what I found.

Hope this helps :)

Explanation:

Robert makes $951 gross income per week and keeps $762 of it after tax withholding. How many allowances has Robert claimed? For weekly income between 950 and 960, the number of withholding allowances claimed are: 0, 259 dollars; 1, 242 dollars; 2, 224 dollars; 3, 207 dollars; 4, 189 dollars; 5, 173 dollars; 6, 162 dollars; 7, 151 dollars; 8, 140 dollars. A. One b. Two c. Three d. Four Please select the best answer from the choices provided A B C D.

Answers

Answer:D

Explanation:

Answer:

D

Explanation:

what climate and growing conditions do sugar beets and sugar cane require

Answers

bright,sunny, hot


step-by-step explanation:

Answer:

it requires a tropical or subtropical climate with a minimum of 600mm of annual

Products that are difficult to move out of a plant once they are manufactured, such as ocean-going vessels and room-sized murals, are usually manufactured in a _____ layout.

Answers

Answer:

fixed-position

Explanation:

If there are not enough jobs for everyone in the economy/the demand for jobs are higher than
the amount of jobs available
A. Cyclical Employment
B. Frictional Employment
C. Structural Employment

Answers

Involuntary unemployment which is caused by the economic health of a country, such that the amount of jobs available cannot cater for the number of populees is called cyclic unemployment.

Cyclic unemployment is usually attributed to the strength of the economy, when the number of jobs available cannot accomodate the demand. This is usually witnessed during period of recession and economic decline.

Structural unemployment result from the difference in skill gaps of the employees and the skill demand of a job.

Frictional unemployment result from the job change and hence are tagged as voluntary.

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When 100% peak effort from the most skilled and efficient workers is assumed, the direct labor hours required per unit is being set using

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Answer:

ideal

Explanation:

When 100% peak effort from the most skilled and efficient workers is assumed, the direct labor hours required per unit is being set using ideal method.

What is term direct labor hour about?

The term direct labor hour refers to as a number of direct labor that are required for production in a manufacturing unit.

A specific task is being assigned to the direct labor, Based on their assigned task the wages of particular labor is calculated.Workers who finish by the time they are supposed to are paid higher.

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Which concept is NOT basic to definition of economics?
O Choice
O Bartering
O Rational self-interest
O Scarcity

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Answer:

O Rational self-interest

Explanation:

Need help ASAP!

Do you believe the law should allow an employer to terminate an employee without good reasons? Explain your thoughts. https://brainly.com/question/25510556

Answers

Answer: no because its not fair and it is not emplo do so much for people.

Explanation:

That sould give u the right answer

Answer:

i don't think so

Explanation:

it is because the law governing a country should be a law that is comfortable for the citizens

When lending money, a long-term lender is more interested in a company's ________ and indebtedness to other lenders.

Answers

The long-term lender is much more interested in the company's profitability and indebtedness to other lenders than in the company's current liquidity.

 

Long-term lending involves a time-frame of five years or more. Therefore, the long-term lender will, generally, be more interested in lending to companies with profitable operations, unlike companies that enjoy good short-term liquidity profiles. The long-term lender also considers the debts already contracted by the borrowing company before offering additional financing.

 

Thus, the interest of a long-term lender is in the company's profitability than in its short-term liquidity.

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When a company guarantees the payment of debt owed by a supplier, customer or another company, the guarantor usually discloses the guarantee as a

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Answer:

Contingent

Explanation:

Under corporate guarantee, company promises that a client, supplier, or other entity will pay a debt, the guarantor typically identifies the guarantee as a contingent guarantee.

What is corporate guarantee?

A corporate guarantee is a contract between a borrower, lender, and guarantor wherein, in the event that the borrower files for bankruptcy, an outside insurance firm assures entire responsibility for the repayment of the loan.

A deed of guarantee and indemnification is a sort of legally enforceable agreement in which a third party agrees to carry out the obligations of another party. It is contingent in nature treated as out of balance sheet item.

Therefore there is only a probable obligation on the company to pay off the debts of principal debtor which is contingent in nature.\

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Which starbucks stores are participating in free red cup?

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The Seattle-based coffee chain is giving away free limited-edition reusable red cups Thursday to customers who order a handcrafted holiday or fall beverage at participating U.S. stores, while supplies last. This year's reusable cup is made with 50% recycled content to honor the chain's 50th anniversary, Starbucks said.

Recall the methods of influencing followers discussed in Chapter 13. Which decision making style likely best fits with the influence tactic of collaboration

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The decision-making style that is likely to fit best with the collaboration influence tactic is the behavioral style, which focuses on interpersonal relationships.

In this style of decision making, the leader seeks to positively influence his team through collaboration tactics, as his leadership style is geared towards integration between teams.

The decision-making process takes place in a collaborative search for information and evaluation of employees' reactions to a decision, being able to ask for advice and search for new ideas before making the decision.

Therefore, in the behavioral style, it is more likely to have integration, communication and increased motivation at work, as employees feel valued for being included in important decision-making.

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Managers should expect to encounter criticisms, disagreements, and other on-the-job conflicts regularly. true flase

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Answer:. True

Explanation:I just finished this test and got it right.

Managers should expect to encounter criticism, disagreements and other on the job conflicts to avoid clash between employees.

What is on job conflict?

On job conflict is a conflict in which the two employees disagree at some point in a work place. There can be healthy conflict which can bring new ideas to help the company grow and reach its objectives, however the manager should closely monitor on the job conflicts between employees and should try to resolve them immediately.

Therefore the statement is True

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Background information: This excerpt describes the United States’ use of economic sanctions against Sudan. It was created by the US Department of the Treasury. According to this text, what action can you assume Executive Order 13067 took? It supplied economic and military aid to the government of Sudan. It imposed trade restrictions on Sudan. It developed a free trade agreement between the United States and Sudan. It created diplomatic relations between the United States and Sudan.

Answers

Answer: it imposed trade restrictions on Sudan

Explanation: Sudan was out of control with violating human rights/international terrorism, so the US limited their power by imposing trade restrictions

According to this document, Executive Order 13067 took the action of developing a free trade agreement between the United States and Sudan. Thus, option B is correct.

What is the Executive Order?

The Executive Orders (EOs) are formal papers through which the President of the United States administers the Federal Government's activities. The orders cite the President's constitutional and statutory powers.

The White House issues Executive Orders, which are used to command the Executive Branch of the United States Government. Executive Orders provide required requirements for the Executive Branch and have legal force.

Therefore, option B is correct, that the executive order imposed trade restrictions on Sudan.

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an important feature of a job order cost system is that each job

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Answer:

Job order costing is useful for determining if a job is profitable. It helps the company make estimates about the value of materials, labor, and overhead that will be spent while doing that particular job

Explanation:

Did you realize before this unit that a speaker had an ethical obligation to their audience when creating and giving a presentation? What do you think is the most challenging aspect about being an ethical speaker?​

Answers

Answer:

confidence and not moving out of point

Explanation:

a speaker must be confident and focus on the point while given out a speech so that the speech great and the massaged will be pass

This unit that a speaker had an ethical obligation to their audience's confidence and not move out of point. The challenges are there.

What are the challenges?

The term challenges refer to the hurdle which has been faced by the person in it, there are life or career as well these can be the challenges as we see the famous personality has more challenges in their life as compared to the others in it as we see the challenges the early period was more than this period.

Speakers had an ethical obligation to their audience when creating and giving a demonstration, Challenges This unit that a speaker had ethical social control over their audience's self-assurance and did not move out of point. The challenges are there. Making and giving a presentation.

Therefore, a speaker had an ethical obligation to their audience's confidence, and not moving out of point challenges are being there.

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When a firm finances new investments, it may set up accounts payable with suppliers, but the balance that the firm must supply is called the investment in net capital.

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When firm finances new investments, then set up accounts payable with suppliers, in which the balance that the firm must supply is called the investment in net "Working" capital.

This is because investment in net working capital is when the capital remains when the current liabilities are removed from the current assets.

The net working capital can be any of the cash, accounts receivable, inventory, and short-term investments or a combination of any of these elements.

The net working capital can be used to pay debts or invest in the growth of the company.

Hence, in this case, it is concluded that the correct answer is "Net Working Capital."

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What are the three (3) main goals for a market economy?
A. Growth, High Employment, Price Stability
B. Hight Demand, High Employment, Price Stability
C. Growth, High Demand, Price Stability

Answers

Answer:

A) Growth, High Employment, Price Stability

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I am new to this, could anyone help me, I am from Peru and I do not endorse anything they tell me, someone could explain to me how this font is used and if you could guide me and be my friend to help me, I would appreciate a heap

Answers

Answer:
Okay no problem

In bankruptcy, a(n) _________ is the representative of an estate and has the capacity to sue and be sued on behalf of the estate.

Answers

The administrator or executor is representative of an estate which has the capacity to sue and be sued on behalf of the estate.

In bankruptcy, the administrator or executor is the representative whose responsibilities is to possess the asset, pay creditors and distribute the remaining assets or other beneficiaries of the bankrupted company.

Usually, the administrator and executors are appointed when the bankruptcy of a business is declared and ascertained.

Therefore, the administrator or executor acts as representative of an estate which has the capacity to sue and be sued on behalf of the estate.

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why might preparing taxes be different for people living in different states?

Answers

Based on state analysis on tax preparation, preparing taxes might be different for people living in different states for many reasons, including different rules and regulations guiding different states.

Other reasons preparing taxes might be different for people living in different states are the following:

The amount of tax imposed on individuals is different from state to state.

Different states have particular laws that guide the tax compositions, collection, and penalties on failure to pay tax when due.

Hence, in this case, it is concluded that the correct answer is difference in laws and regulations concerning tax.

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Answer:

everyone must file state taxes but depending on where you live , you may not need to file federal taxes

Explanation:

beacuse have different law

What is the answer to number 1 and 2​

Answers

A and Dare the answers

which act governors partnership firm??​

Answers

Answer:

Partnership firms in India are governed and regulated by the Indian Partnership Act, 1932. Partners are the individuals that join together to form a partnership firm. A contract between the partners establishes the partnership firm.

Explanation:

What is the allowance provided to an employee (salon manager) in charge for a full week?

Answers

Answer:

$44.98 per week

Explanation:

This allowance is based on a working condition or a disability as part of working a shift.

A _________ specializes in developing plans and recommendations that meet the software and system needs of an organization.

Answers

A person that develop plans as well as making recommendations so that software and system needs can be met in an organization is systems analyst.

systems analyst can be regarded as a person that utilize his experience in analysis and design techniques to make recommendation in term of needs of the organization.

This could be in Tech. industry such as in software and others.

Therefore, systems analyst is correct.

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