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Suppose the target rate of inflation is 2.5%, the current rate of inflation is 2%, and the output gap is -3.5%. What is the interest rate if the Taylor rule is: r = 5.5 + 1.75Y + 1.25(pi - pi r)? Using the equation in part (a), describe the meaning of the number 1.75. Using the equation in part (a), describe the meaning of the number 1.25. What is the interest rate if the Taylor rule is: r = 5.5 + 1.75 Y + 1.75(pi - pi r) Comment on these two Taylor rules. Which leads to higher interest rates, which leads to higher output? Which leads to higher inflation? Which represents a more hawkish Fed? Which represents a more dovish Fed?
To determine the cost of using these people in the army what information do you need.
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Illustrate what kind of factors are contained in u. Are these likely to be correlated with level education.
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illustrate what steps would you as an auditor take to assure you have minimized the potential for audit risk making a positive evaluation of the firm's financial status when it is in fact negative.
Explicate 2 important indicators the Federal Reserve System will use to analyze this particular economic situation.
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