Suppose the economy is thought to be 1 percent below its potential output (i.e., the output gap is ?1 percent). The potential output is growing at 4% a year. Suppose the Fed is following the Taylor rule, with an inflation rate of 4 percent over the past year. The equilibrium real fed funds rate is 3 percent, the weight on the output gap is 0.75 and the weigh on the inflation gap is 0.25. The inflation target is 1 percent. What should the federal funds rate be?
A. 7 percent
B. 8 percent
C. 9 percent
D. 10 percent
Answer: A
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A. Rephrasing B. Boomerang C. Forestall D. Dodge E. Compensation
The owner transfers a personal automobile to the company with a fair market value of $12,000. The entry will be made in the
A) purchases journal B) cash payments journal C) cash receipts journal D) general journal
The following is an account for a production department, showing its costs for one month:Work in Process InventoryBeginning Balance5,400Completed and transferred out49,410Direct materials21,600 Direct labor16,200 Overhead10,800 Ending Balance4,590 Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost of completing the units in the beginning Work in Process inventory?
A. $7,560. B. $12,150. C. $54,000. D. $37,260. E. $2,160.
How might a firm utilize a focus group to assess customer needs?
What will be an ideal response?