Suppose that the equilibrium real federal funds rate is 4% and the target rate of inflation is 1%. Use the following information and the Taylor rule to calculate the federal funds rate​ target:
Current inflation rate​ = 4%
Potential real GDP​ = ​$14.72 trillion
Real GDP​ = ​$14.81 trillion
The federal funds target rate is____​%.​

Answers

Answer 1

Answer: 9.81%

Explanation:

The formula to find the Federal funds target rate is:

= Current inflation + Equilibrium federal funds rate + (0.5 * (Current inflation -  Target inflation rate)) + (0.5 * Output gap)

Output gap:

= (Real GDP - Potential GDP) / Potential GDP

= (14.81 - 14.72) / 14.72

= 0.611%

Federal funds target rate is:

= 4% + 4% + (0.5 * (4% - 1%)) + (0.5 * 0.611%)

= 9.8055%

= 9.81%


Related Questions

Whether it is proactive or reactive, organizational change is inevitable. Unfortunately, people don’t always like change and tend to be resistant to it. This activity is important because managers need to understand what to expect from employees in terms of their resistance to change in order to better manage workers through the change process.
The goal of this exercise is to challenge your knowledge of the ten reasons people resist change. First, read each of the statements that depict an example of something related to an organizational change. Then, click and drag each statement to the reason for change resistance that it best depicts.
1. Your manager ensures you the change won't alter your salary, but you worry he'll only look out for himself.
2. Your work colleague is upset about a change to the department, therefore you resist the change, too.
3. New procedures are vastly different from old ones, and you aren't sure you can learn them.
4. You worry that recent technology changes may eliminate the need for your managerial position.
5. The organization implements massive structural changes with no explanation.
6. A notoriously unlikeable manager delivers the news of a change.
7. Your boss suddenly and without warning announces her re-signation and replacement.
8. Five close members of a department are re-assigned and are no longer part of the same work group.
9. You immediately resist an organizational change because you have a deep fear of change.
10. All employees now must work two extra hours per week with no additional pay.
A. Individuals' Predisposition Toward Change.
B. Surprise and Fear of the Unknown.
C. Climate of Mistrust.
D. Fear of Failure.
E. Loss of Status or Job Security.
F. Peer Pressure.
G. Disruption of Cultural Traditions or Group Relationships.
H. Personality Conflicts.
I. Lack of Tact or Poor Timing.
J. Non-reinforcing Reward Systems.

Answers

Answer:

Organizational Change and Reasons for Resistance

Example  Reason for Change Resistance

1.              C. Climate of Mistrust.

2.             F. Peer Pressure.

3.             D. Fear of Failure.

4.             E. Loss of Status or Job Security.

5.             I. Lack of Tact or Poor Timing.

6.            H. Personality Conflicts.

7.            B. Surprise and Fear of the Unknown.

8.            G. Disruption of Cultural Traditions or Group Relationships.

9.            A. Individual's' Predisposition Toward Change.

10.          J. Non-reinforcing Reward Systems.

Explanation:

1) Reasons for resisting change:

A. Individual's' Predisposition Toward Change.

B. Surprise and Fear of the Unknown.

C. Climate of Mistrust.

D. Fear of Failure.

E. Loss of Status or Job Security.

F. Peer Pressure.

G. Disruption of Cultural Traditions or Group Relationships.

H. Personality Conflicts.

I. Lack of Tact or Poor Timing.

J. Non-reinforcing Reward Systems.

What are some potential positive outcomes of filing for bankruptcy?

Answers

Answer:

An automatic stay against creditors. Once you file, the court automatically issues this stay against any and all debt collection activity.

Dischargeable debts.

Bankruptcy exemptions might allow you to maintain ownership of your property after bankruptcy.

Credit Score.

what is commercial bank? in your own words. ​

Answers

Answer:

a commercial Bank is a type of banks that provide services such as accepting deposits making business loan etc

Explanation:

what is credit? in your own words. economics.​

Answers

Answer:

credit is like owing someone money for a long period of time and isn't payin it

Why is it common for producers of services to sell through short distribution
channels directly to the end user?
O A. Transportation costs for services tend to be extremely high.
O B. Not many intermediaries care to distribute services.
C. Some kinds of services are distributed through a broker or agent.
D. The people providing the service often do so by interacting directly
with the user.

Answers

Answer:The people providing the service often do so by interacting directly with the user.

Explanation:

Just took the quiz.

Producing one yard of cloth requires 3 worker and 1 capital, while producing one pound of food requires 1 worker and 2 capital. Both countries have 720 workers; the United States has 480 capital, while ROW has 720. The price of food is always $24/pound; the price of cloth is $22/yard in the United States in autarky and $32/yard in both countries under free trade. The labor constraint is

a. QC + 2QF = 720
b. QC + 3QF = 720
c. 2QC + QF = 720
d. 3QC + QF = 720
e. none of the above

Answers

Answer:

d. 3QC + QF = 720

Explanation:

The labor constraint is the resource limitation in terms of labors. If labor resource is scarce then production schedule needs to prepared with special attention to utilize the resource in best possible way. The labor constraint  is 3QC + QF = 720 for the ROW.

Which of the following statements, if any, are correct?
1. The Automatically Assessed Formula for determining the Expected Family Contribution (EFC) requires that the student or parent's AGI is less than $50,000.
2. The Simplified Method for determining Expected Family Contribution (EFC) does not consider the family's assets in its formula
a. 1 only.
b. 2 only.
c. Both 1 and 2.
d. Neither 1 nor 2.

Answers

Answer:

The answer is "Option b".

Explanation:

In this question, Option b is correct because the self-assessment pattern suggests which all the information provided by the private entity is accurate but, without the requirement for further information from the taxpayer, the taxation responsibility of the individual shall be calculated in light of the information provided in the tax documents. for this formulation automatically evaluated AGI limited to or below 20000.

Which of the following commodities is a good?
A.
A swimming lesson
B.
A desk
C.
House cleaning
D.
Dog walking

Answers

Answer:

All are good actually

But house cleaning ig ;)

Answer:

B. A desk

Explanation:

A desk is a product that can be bought, sold, or traded.

also correct on edge

There is no substitute for the product that is being sold.

A) perfect competition
B) monopolistic competition
C) Oligopoly
D) monopoly

Answers

Answer:

monopoly or b

Explanation:

Use the following to answer questions 31 - 32: Ann is the president of the Paper Supply Company. She is thinking about updating the technology used to produce the paper goods her company sells. Sales have been increasing and are currently around 7,000 tons per year. She has identified the following potential options: Alternative 1 - Use the current technology with annual fixed costs of $10,000 and variable costs of $10 per ton. Alternative 2 - Update the current technology resulting in annual fixed costs of $20,000 and variable costs of $8 per ton. Alternative 3 - Adopt the latest technology resulting in annual fixed costs of $40,000 and variable costs of $6 per ton. 31. The two relevant cross-over volumes (those volumes at which you would shift from one process to another)
A) 5,000 & 7,000
B) 7,000 & 10,000
C) 5,000 & 10,000
D) 7,500 & 10,000
Which alternative would you recommend, and why?
A) Alternative 1
B) Alternative 2
C) Alternative 3
D) Any of the above

Answers

Answer:

31. B) 7,000 & 10,000

32. B) Alternative 2

Explanation:

Volume is 7000 tons :

Alternative 1 costs : $10,000 + (7000 * $10 ) = $80,000

Alternative 2 costs : $20,000 + (7000 * $8 ) = $76,000

Alternative 3 costs : $40,000 + (7000 * $6 ) = $82,000

Alternative 2 is the most cheapest option if the volume is between 7,000 tons to 10,000 tons.

Which of the following will increase supply of ice cream, a normal good?
A) An increase in the number of restaurants selling ice cream
B) An increase in the cost of milk, a key ingredient in ice cream
C) An increase in the price of cones used to serve ice cream
D) An increase in consumers’ income
E) A tax increase on ice cream distributors

Answers

Answer: uhm I think D sorry if I’m wrong

there are two packs of cards each containing 52 cards. one card is drawn from each pack. find the probability that at least one of them will be the ace of hears.​

Answers

Answer:

Probability drawing at least one ace of hearts is 3.8 %

Explanation:

Probability of drawing at least one ace of hearts = 1 - probability of no aces of hearts being drawn.

Probability of drawing no aces of hearts

[tex](\frac{51}{52})^2[/tex] [tex]= 0.9619[/tex]

Probability drawing at least one ace of hearts

[tex]= 1- 0.9619\\\\= 0.03809\\= 3.8[/tex]%

2. Will planning become more or less important to managers in the future? Why?​

Answers

Answer:

I think it will not be important cause there would be new technology that would fix everything up.

Ringmeup Inc. had net income of $143,100 for the year ended December 31, 2019. At the beginning of the year, 36,000 shares of common stock were outstanding. On May 1, an additional 18,000 shares were issued. On December 1, the company purchased 4,300 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ringmeup paid the annual dividend on the 9,000 shares of 4.65%, $100 par value preferred stock that were outstanding the entire year. Calculate basic earnings per share of common stock for the year ended December 31, 2013.

Answers

Answer: $2.12 per share

Explanation:

Basic earnings per share is calculated by the formula:

= (Earnings - Preferred share dividends) / Weighted average number of shares at year end

Weighted average number of shares at year end:

= (36,000 * 11/12 months) + (18,000 * 8/12 months) + ((38,000 - 4,300)) * 1/ 12 months)

= 47,808 shares

Preferred share dividends :

= 9,000 * 4.65% * 100

= $‭41,850‬

Basic earnings per share:

= (143,100 - 41,850) / 47,808

= $2.117846

= $2.12 per share

All of the following options are good tips for borrowing money EXCEPT...
A) pay back your money on time
B) consider quick cash loans with high interest rates as a C)strong option
pay back everything you owe in full

Answers

I would say B. Quick cash loans. Interest rates are very high & not a good idea in borrowing money. They are designed for people who have poor credit ratings & have no other means to borrow money.

define equity economics.​

Answers

Answer:

fairness or evenness

Explanation:

Basically being fair to one another.

define equity economics.​

Answers

Answer:

Equity or Economic equality is the concept or idea of fairness in economics, particularly in regard to taxation or welfare economics.

Answer:

Equity or Ecomics equality is the concept or idea of fairness in economics, particularly in regard to taxation or welfare economics

A batch of 100 parts contains 6 defects. If two parts are drawn randomly one at a time without replacement, what is the probability that both parts are defective?

Answers

Dispel Elmer fear bcdjjsjswjwjwkwkkwekenneenej

The Clean Water State Revolving Fund (CWSRF) in 1987, a low-interest loan program intended for states replaced the Construction Grants program.


True

False

Answers

The answer is true . Could you put my answer as the brainiest

Answer:

True

Explanation:

Which best describes one of the primary aims of government fiscal policy?

Answers

It’s primary aims of government fiscal policy is to put more money into citizens hands .

_____ can be used as collateral for up to 95 percent of the policy's cash value.


Real estate

Insurance policies

Equipment

Accounts receivable

Answers

the answer is “insurance policies”

Answer:

Insurance policies

Explanation:

What are the reasons of marketing for Air Jordans shoes??

Answers

Answer:

to better their brand recognition and better their market shares through embracing social media and customer interactions.

Explanation:

what are the consequences of unemployment​

Answers

Answer:

The personal and social costs of unemployment include severe financial hardship and poverty, debt, homelessness and housing stress, family tensions and breakdown, boredom, alienation, shame and stigma, increased social isolation, crime, erosion of confidence and self-esteem, the atrophying of work skills and ill-health ...

Explanation:

unemployment has cost to a society that are more than just Financial unemployed individuals not only lose income but also faced challenges to their physical and mental health

A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is___and___. Thus, the visual appearance would be classified as a public good.
Suppose the college administrators estimate that the beautification initiative will cost $7,200. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 300 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $18.
The benefit of the beautification initiative, as suggested by the survey, is $___. Because the estimated benefit is___than the cost, the college administrators____undertake the beautification initiative.
The calculation of the benefit of the beautification initiative relied on the ability of the administrators to capture the true willingness to pay of each student accurately. Which of the following scenarios would cause the survey used by the college administrators to yield misleading data on willingness to pay?
A. Students believe that if the initiative does not happen, the funds for the initiative will not be spent elsewhere.
B. An equal number of male and female students were surveyed.

Answers

Answer:

"non-rival" and "non-excludable". $18.lessshould notA. Students believe that if the initiative does not happen, the funds for the initiative will not be spent elsewhere.

Explanation:

Since the project is simply about planting trees and remodeling buildings so as to make the campus more aesthetically pleasing hence for the students of the college, the visual appearance of the campus can be categorized as non-rival and non-excludable. Meaning, anybody can freely benefit from the project.

The benefit of the beautification initiative is $18 since the average willingness to pay is by the students is $18.

We can thus conclude that the estimated benefit is less than the cost since we are told that $7,200 is the entire cost of the initiative, which when compared to be amount to be contributed has a shortfall (300*$18=$5,400∠$7200). Thus, the college administrators should not undertake the beautification initiative.

Which of these is not one of the basic functions of the management​ process?

Answers

Answer:.

Explanation:

what is the difference between job rotation, job delegation, job enlargement and job enrichment​

Answers

Answer:

Whereas job enlargement means increasing the scope of job quantitatively by adding up more tasks, job enrichment means improvement in the quality of job such that employees are more satisfied and fulfilled. ... Job enrichment entails the functions of planning and organizing and enlargement involves execution of the same.

A survey conducted recently in China showed that in the last two years, Investments in the businesses increased by almost 75%. The same survey also concluded that people became wealthy by investing in businesses, and this motivated other people to invest more in their respective businesses. What most likely triggered this increases in investment?

Answers

Answer:A survey conducted recently in China showed that in the last two years, Investments in the businesses increased by almost 75%. The same survey also concluded that people became wealthy by investing in businesses, and this motivated other people to invest more in their respective businesses. What most likely triggered this increases in investment? Incentives

Explanation:China’s State Council announced US$6.59 billion worth of tax cuts for businesses and investors, hoping to reduce the burden on small and micro-enterprises, encourage investors to continue lending, and ensure capital flow in the economy. These tax cuts were for example:On companies that have suspended production or business due to restructuring or cutting of overcapacity. They can have their real estate tax and land-use tax either reduced or exempted altogether.Investors in social security funds and basic pension funds can enjoy tax relief.Postal savings banks with large amounts of agriculture-related loans can pay a preferential value-added tax.Lenders to small and micro-enterprises can enjoy expanded value-added tax exemption on loans to such enterprises.Foreign institutions can exempt their corporate income tax and value-added tax on interest gains from onshore bond market investments.Also, to boost foreign investments, China would cut import tariffs on 1,585 taxable items, including machinery, textiles, paper products, and construction materials...

what is credit crunch ? in your own words. ​

Answers

Answer:

it is the sudden ruduction of available money or credit in the banks or lenders

define capital economics.​

Answers

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Answer:

In economics, capital consists of human-created assets that can enhance one's power to perform economically useful work. ... Capital goods, real capital, or capital assets are already-produced, durable goods or any non-financial asset that is used in production of goods or services

<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3<3

Answer:

In economics, capital consists of human-created assets that can enhance one's power to perform economically useful work. Capital goods, real capital, or capital assets are already-produced, durable goods, or any non-financial asset that is used in the production of goods or services.

Explanation:

hope this helps...

have a great day...

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Multiple Select Question
Select all that apply
The parts of the process cost summary include: (Check all that apply.)
cost assignment and reconciliation.
equivalent units of production.
cost charged to each job.
costs charged to departments.
Need help? Review these concept resources.

Answers

Answer:

Cost assignment and reconciliation

Physical flow of units

Equivalent units of production

The parts of the cost summary include the cost assignment and reconciliation. The cost charged to each job and the equivalent units of production. Hence the option A, B, and C are correct.

What is a cost summary ?

The cost summary is one that is used to estimate the cost and is based on the cost-benefit analysis. The summary tells us about the assignment and reconciliation of the costs and costs that are charged for each job. It also tells us about the equal units of production.

Find out more information about the cost summary.

brainly.com/question/1788884.

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