Find real federal funds rate recommended by taylor rule

Assignment Help Business Economics
Reference no: EM131085955

If the equilibrium real fed funds rate and the inflation target are 2%, actual inflation is 3%, and the output gap is –1%, find the real federal funds rate recommended by the Taylor Rule.

Reference no: EM131085955

Questions Cloud

Starting at the natural rate of output : Show (and explain) the short- and long-run effects of a decrease in the money supply, on a graph of AS and AD, starting at the natural rate of output. Is money neutral?
Question regarding the measures of economic growth : Analyze measures of economic growth, and comparative and absolute advantage in international trade for the following countries:
Computation of the sample mean and variance from data : Compute the sample mean , the sample variance S2, and an estimate for the variance of the sample mean s2 = (1/ n )S2 for the following sample:
Find the demand functions : Consider an individual with utility of the form: U(x.y)=400+x^ay^b where (a+b) = 1. the price of good x is px and the price of good y is py. The individual faces a budget constraint of I (income).
Find real federal funds rate recommended by taylor rule : If the equilibrium real fed funds rate and the inflation target are 2%, actual inflation is 3%, and the output gap is –1%, find the real federal funds rate recommended by the Taylor Rule.
Antitrust legislation in the united states : Defend or critique the key provisions of the antitrust legislation in the United States. Analyze the major ways in which quality issues in health care affect antitrust healthcare policy. Provide at least one (1) example of antitrust laws in action..
Question regarding the function of wage : a) Derive the consumer's budget constraint and its choice variables (ie. the total amount of hours worked and leisure as a function of wage) b) Derive the consumer's marginal rate of substitution dC/dR
Policy pro-cyclical or anti-cyclical : If a central bank adopts a policy of fixing an interest rate at a constant value and the economy enters a recession, what would happen to money supply and demand? Explain with a graph. Is this policy pro-cyclical or anti-cyclical?
Complete graph with directed edges : Assignment 2. Recall that a tournament is a complete graph with directed edges (so we think of the vertices as players in a tournament in which every pair of players play each other, with a directed edge (u, v) if u beats v). Fix a positive intege..

Reviews

Write a Review

Business Economics Questions & Answers

  The manager and accountant about their dispute

The manager of a vacation resort has claimed that, on average, a guest spends at least $1600 at the resort during a one week stay, including meals and entertainment. A member of the accounting staff does not believe the amount is that high. what woul..

  Industrial concentration and nature of antitrust policies

How does the U.S. economy compare with other market capitalist economies with respect to its degree of industrial concentration and the nature of its antitrust policies?

  About the population

If the population of Argentina was 26.5 million in 1960 and the average population growth rate is 0.6 percent per year, then Argentina's population would have been about ______ in 2000.

  Substitution effect change firm employment and capital stock

Consider a firm for which production depends on two normal inputs, labor and capital, that are not perfect complements. Initially the firm faces market prices of w = 10 and r = 8, for labor and capital. These prices then shift to w=7 andr=7. In which..

  Method the price elasticity of demand for a good

Using the midpoint method the price elasticity of Demand for a good is computed to be approximately

  Illustrate firm short-run curve and its long-run supply

Illustrate what is the difference between the firm's short-run supply curve and its long-run supply curve? Make up an actual example to explain your answer.

  Duopolists who produce identical products

wo companies A also B are duopolists who produce identical products. Determine the long run equilibrium output also selling price for each firm.

  Explain what would happen to equilibrium price and quantity

Explain what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred (be sure to indicate WHY it happens as well)

  International trade has pros and cons

International trade has pros and cons. Economists generally supports free trade. International trade has played a significant part in promoting economic development and technology transfer among countries. There are also various arguments in favour o..

  New production occurred for this transaction

How will commercial airlines respond to the threat of new $27,500 fines for keeping passengers on the tarmac for more than 3 hours? What inefficiency will this create? I recently sold my used car. If no new production occurred for this transaction, h..

  Demand to make the subsequent computations

Utilize these values at this point on demand to make the subsequent computations.

  Bureau of labor statistics index of labor productivity

One shortcoming of the Bureau of Labor Statistics Index of Labor Productivity is that it:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd