The new chairman of the Ionian Central Bank (ICB) is preparing for her first board meeting. She is expected to recommend a monetary policy for the board to pursue. She decides to use the Taylor rule, which was originally developed for the U.S. Federal Reserve.
Ionia's potential GDP is 100 million drachma, but current GDP is 102 million . What is Ionia's output gap?
Ionia's output gap: ______________%
Inflation is running at 6%, but the chairman considers an inflation rate of 3% to be a reasonable goal. What is Ionia's inflation gap?
Ionia's inflation gap: ______________%
The Taylor rule helps the chairman to determine the target
- fed funds rate.
- discount rate.
- inflation rate.
Calculate this target rate for Ionia, according to the Taylor rule.
target rate: ______________%
The current rate is 4%, so the chairman recommends
- buying securities.
- selling securities.
Answer:
Ionia's output gap: 2%
Ionia's inflation gap: 3%
- fed funds rate
target rate: 10.5%
- selling securities
Explanation:
The Taylor rule was developed as a simple way for the Federal Reserve to determine the appropriate federal funds rate target. The federal funds rate is the interest rate one bank charges another for overnight loans. The rate the Fed charges for last resort loans is the discount rate.
federal funds rate target = 2 + inflation + (0.5 × inflation gap) + (0.5 × output gap)
Start by calculating the gaps. Be sure to subtract the target value from the current value. The GDP gap will be stated as a percentage of potential GDP.
output gap = current GDP − potential GDP / potential GDP
=102 million − 100 million / 100 million
=2 million / 100 million
=0.02
=2%
inflation gap = current inflation − inflation target
=6% − 3%
=3%
Now, use these gap numbers in the full equation.
federal funds rate = 2 + inflation + (0.5 × inflation gap) + (0.5 × output gap)
= 2 + 6 + (0.5 × 3) + (0.5 × 2)
= 10.5
The current federal funds rate is 4%, so the central bank needs to bring the rate up to 10.5%, which can be done by selling Treasury securities. This will lower the price of securities and pull the interest rate up.
Which of the statements best describes the monetary rule, as proposed by the economist Milton Friedman?
Inflation is kept in check in the long run by keeping the growth of M1 and M2 on a steady path.
Inflation is kept in check by directly manipulating interest rates to decrease bond prices.
An acceptable rate of unemployment is targeted and the money supply is adjusted accordingly.
Inflation is kept in check by increasing the growth of M1 and decreasing the growth of M2 in equal amounts.
Answer:
A. Inflation is kept in check in the long run by keeping the growth of M1 and M2 on a steady path
Explanation:
Friedman's k-percent rule, where the money supply would be automatically increased by a fixed percentage per year. He stated that money supply should be in a steady rate in check of inflation for better economic performance.He maintained that there is a close and stable association between inflation and the money supply, mainly that inflation could be avoided with proper regulation of the monetary base's growth rate.
As originally proposed by the economist Milton Friedman, the monetary rule is a guideline for policymakers to maintain a reasonable amount of annual inflation. It is primarily accomplished by maintaining the growth rates of M1 and M2 on a steady path, in accordance with the equation of exchange.
Answer:
inflation is kept in check in the long run by keeping the growth of M1 and M2 on a steady path
Explanation:
Look at the image illustrating a topic from the Cold War. Then answer the question that follows.
What does this image illustrate?
Answer:
Its shows countries involved in the cold war
Explanation
how did slavery VS abolition lead up to the war?
Explanation:
Abolitionist grew more strident in their demands, and slave owners entrenched in response, fueling regional divisiveness.
positive and negative impacts of population growth? at least 5 positive and negative impacts.
Answer:
A
Explanation:
Because I said so the answer is A
what are the functions of industry
Answer:
Industry, broadly speaking, is the social institution whose role it is to produce and service the products which man requires for satisfying his material needs.
Purpose and Functions.
The Industrial Relations Commission conciliates and arbitrates to resolve industrial disputes, sets conditions of employment and fixes wages and salaries by making industrial awards, approves enterprise agreements and decides claims of unfair dismissal
Human Resource Department is an integral part of any organization.
Also, the Human Resource Manager (HRM) is a member of the management. Four basic functions of Human Resource Management are Planning, Directing, Controlling and Organizing.
Answer:
- Development of industries in the district.
- Registration and licensing of new industrial undertakings.
- Acquisition of land for industrial purpose.
- Development of Industrial area.
- State's participation in Private sector undertakings.
- Industrial survey.
- Creation and maintenance of Industrial Estates.
Explanation:
ILL GIVE BRAINLIST
Based on Wilson's quote, which best explains why the
United States entered World War I?
O The US continued to believe in neutrality but could
not stand by while its businesses suffered.
O The US continued to believe in neutrality but could
not stand by while its allies were defeated.
O The US feared continued aggression by the Central
Powers would hurt Americans.
O The US feared continued aggression by the Allied
Powers would hurt Americans.
Answer:
c the correct answer is C
Which of the situations is an example of the crowding-out effect on investment as it pertains to macroeconomics?
The government of Walla Walla spent $4.3 billion dollars and collected $2.2 billion dollars in tax revenue.
Candex, an eyeglass frame company, decides to cut the price on all of its frames to $10, which successfully drives out all other firms from the market.
The government deficit is at an all-time high in the United States. As such, people begin to save more money in fear that taxes will increase in the future.
Jack wants to borrow money to create a cowboy-themed inflatable bounce house for kids called "Wild Wild West." However, the government is running a deficit which has increased interest rates so much that Jack can no longer afford to borrow the money.
Answer:
Jack wants to borrow money to create a cowboy-themed inflatable bounce house for kids called "Wild Wild West." However, the government is running a deficit which has increased interest rates so much that Jack can no longer afford to borrow the money.
Explanation:
Crowding-out is when government borrowing results in higher interest rates and less capital available for private investment.
For example, if the government runs a deficit, it must enter the market for loanable funds as a borrow (demander). Holding all else equal, the increase in demand will result in higher interest rates. Due to the interest rate increase, Jack can no longer afford to borrow the startup money needed to create his bounce house business. The government has crowded Jack out of the market by increasing the demand for loanable funds.
Walla Walla is running a budget deficit, which can lead to crowding out, but there is no evidence that investment has been crowded out. Government deficits may lead to increased taxation to bridge the deficit, and people saving more as a result is an example of Ricardian equivalence. Candex is engaging in predatory pricing.
HURRYThe system of delivery tubes in a plant:
vascular bundle
phloem
xylem
veins
Answer:Vascular plants have two systems, one with tubes move water up through the plant (Xylem), and one with tubes that move sugar through the plant (Phloem).
Explanation:
Answer:
Vascular bundle. The phloem and xylem are both delivery tubes. Veins are not. The vascular bundle is a bundle of both the phloem and xylem, therefore, the answer is the vascular bundle. Hope this helps! :)
Explanation:
found it on quizlet and I it was right when I turned it in
how can a hight amount of human right violations lead to a negative impact on the community
Answer: The consequences of repression and resistance include the physical toll taken by torture and other forms of severe ill treatment.
Explanation:
Boston, Massachusetts __°F
Answer:
I think I can’t see it
Explanation:
43
States and cities get money from the _____________ on products that people buy.
A) property taxes
B) sales tax
C) income tax
Answer:
Explanation:
B
Name 3 ways to be a good citizen:
1.
2.
3.
Why did Republicans press for a constitutional amendment rather than a law to end slavery?
A)A constitutional amendment was easier to pass than an act of legislation.
B)There was no way for Congress to pass an act of legislation abolishing slavery.
C)They wanted to ensure a permanent end to slavery by making emancipation part of the Constitution.
D)They wanted the support of southern Democrats who favored the end of slavery.
Answer: D. They wanted the support of southern Democrats who favored the end of slavery.
Answer:
C
Explanation:
They wanted to make sure that this was a permanet solution and not somthing that the southern democrats could undo esaily.
How did Stalin change the economy of the USSR? Choose three correct answers.
by collectivizing farms
by moving to a more capitalist economy
by moving peasants from farms to cities
by using five-year plans to increase industrialization
by trading with other countries to create a food surplus
How does games and sports make good relationship among the countries
Answer:
I helps to get a long with the people
Explanation:
According to Adam Smith, what is one way competition between producers benefit the
consumer?
Answer:
lowering their prices or introducing new products
Explanation:
In many countries, one of the roles of the central bank is to provide loans to distressed financial institutions. What is the term for this?
- liquidity resource
- source of ultimate credit
- provider of fiduciary insurance
- lender of last resort
- bailout bank
Another potential role of central banks is to foster confidence in the banking system by making sure that people can retrieve their money even if a bank goes bankrupt. What is the term for this?
- banking promise
- deposit guarantee
- financially distressed institution clause
- deposit insurance
(1) Providing loans to distressed financial institutions is called: Lender of last resort
A lender of last resort is a lender that provides loans (usually short‑term) to banks in times of financial distress or crisis.
(2) Role of central bank in ensuring people can retrieve money from bankrupt bank is called: Deposit Insurance
Deposit insurance is an insurance system that protects depositors so that they do not lose their money if a bank fails.
What are the consequences of population growth...?
Explanation:
Population growth is a big problem for world nowHigher the population,higher the requirements,higher the industries and hence higher the pollutionIt increases food sacricity through out the world because required food are insufficient.It also hampers economyWhat does Ebadi say about how Iran is coping with modern problems?
Explain what Ebadi means by “not lag behind the caravan of civilization, development and progress?
Answer:
1.Shirin Ebadi took up the struggle for fundamental human rights and especially the rights of women and children. She took part in the establishment of organizations that placed these issues on the agenda, and wrote books proposing amendments to Iran's succession and divorce laws.
2.Shirin Ebadi, (born June 21, 1947, Hamadan, Iran), Iranian lawyer, writer, and teacher, who received the Nobel Prize for Peace in 2003 for her efforts to promote democracy and human rights, especially those of women and children in Iran. She was the first Muslim woman and the first Iranian to receive the award.
Explanation:
i hope this helped
Stalin encouraged
this man to invade
South Korea
Answer:
In April 1950, Stalin gave Kim permission to invade the South under the condition that Mao would agree to send reinforcements if needed. Stalin made it clear that Soviet forces would not openly engage in combat, to avoid a direct war with the US.
Work on some skills using metaphor and choosing words carefully with this fun, challenging exercise. Imagine you live in a world where there are only 10 words you can ever use. You can repeat them as much as you want, but you can’t ever use any other words. Write down the 10 words you’d choose?
The purpose of the question is to use metaphors and choose 10 most useful words using creativity. Some of the most used words in English are:
TheToAndLoveEatSleepGirlBoyHaveTalkWhat are metaphors?It is a figure of speech used to establish a non-explicit comparison, that is, using a word with a figurative meaning, without using a conjunction for this purpose.
So in this activity, you can choose the ten words based on their usefulness, your preference, and create metaphors with them through your creativity.
Find out more about metaphors here:
https://brainly.com/question/9418370
According to the historians, the easiest way to understand the culture of a group of people is to read their literature, and the easiest way to appreciate the song and dances of a nation is for you to have an
understanding of their literature. Do you agree with the statement? Why? Support your answer with facts.
Answer:
No, having a first-hand experience is better than actually reading about it. This is for multiple reasons, for one if you immerse yourself in the customs of a people you yourself are learning it then, and there with help from the culture, you are learning of course, this is not present in simply reading about it
Explanation:
How did Southern Illinois help the Union war effort?
Answer:
Illinois was a major source of troops for the Union, and it also provided military supplies, food, and clothing.
Explanation:
Which statement best summarizes the evolution of US political parties? A. Two political factions began with Thomas Jefferson's presidency, but official political parties didn't begin until the late-1800s. B. Two early political factions developed into political parties in John Adams' presidency, but official parties didn't begin until the early-1800s. C. President John Adams headed the first official political party and there have been two parties since that time. D. President Washington headed the first official political party and there have been two parties since that time.
Answer:
C
Explanation:
Americans over 65 years of age are most active doing what
Answer:
Well, usually, 65 year olds usually retire, but, some people are strong enough and are willing to keep on doing their day-to-day jobs.
What type of trade barrier did the United States use on South Africa and why?
Answer:
Tariffs & NTB's U.S. companies have cited protective tariffs as a barrier to trade in South Africa.
What is the ansewe of this test here
Im on wdgenuity !
Answer:
im sorry, can you elaborate on this?
Explanation: id like to help, but i dont know what you mean
Where do most Australians live?
Your answer:
The coast
The outback
Tasmania
The Great Dividing Range
Answer:
I belive it is the cost ( researched)
Why is it difficult to get medicine to rural areas in Africa?
Answer:
many south Africans living in rural areas lack access to affordable,quality and comprehensive health care,despite significant government