7. The Taylor Rule states that the central bank should set the short-term nominal interest rate (i)
based on the inflation gap [the difference between inflation (3.14) and desired inflation (3.14*)] and the
output gap (the percentage difference between real GDP (Y) and potential GDP (Y*) An
example of a Taylor Rule would be the formula
i - 3.14 = 1.5 +0.5(3.14-3.14*) +0.5 (Y-Y*/Y*)
The term on the left-hand side is the real interest rate. Consider the following table
Inflation rate (3.14), %
Target inflation rate (3.14*), %
Output gap, %
Real interest rate
Nominal interest rate
Base Scenario Scenario B Scenario C
4.0
20
2.0
20
0.0
20
20
20
00
a. Fill in the real and nominal interest rates chosen by the policy maker in the base scenano
b. How does scenario B differ from the base scenario in terms of the inflation and output gaps?
Calculate the real interest rate. Has the real interest rate moved in the direction that would
move the inflation rate toward its target?
c. How does scenario C differ from the base scenario in terms of the inflation and output gaps?
Calculate the real interest rate. Has the real interest rate moved in the direction that would
move output toward the potential level?
d. Suppose a new chair of the central bank is appointed and she switches to a new policy rule of
the form given in the next equation. Recalculate the real and nominal interest rates for the
three scenarios. What has been the effect of the change in weights?
i-3.14=1.5 +0.75(3.14-3.14*) +0.25(Y-Y*/Y*)
The weight on the inflation gap has increased from 0.5 to 0.75. The real interest rate is 16.86% and Nominal interest rate is 20%
a. In the base scenario, the real interest rate will be 20%, and the nominal interest rate will be 20%.
b. In scenario B, inflation rate will be higher (4%) compared to the base scenario (3.14%).
Output gap is 0% in both the scenarios, however, in the base scenario inflation gap is 0% (3.14 - 3.14) and in scenario B, inflation gap is 0.86% (4 - 3.14).
Now, let's calculate the real interest rate.
Real interest rate in base scenario = 20% - 3.14%
= 16.86%.
Real interest rate in scenario B = 20% - 3.14% + 1.5 + 0.5 (4-3.14) + 0.5 (0-0/0)
= 19.22%.
The real interest rate has moved in the direction to move inflation rate towards its target.
c. In scenario C, the output gap will be 20% compared to 0% in the base scenario.
Inflation gap is 0% in both the scenarios
Inflation rate is 3.14% and in scenario C, inflation rate is 2%.
Let's calculate the real interest rate. Real interest rate in the base scenario = 20% - 3.14%
= 16.86%.
Real interest rate in scenario C = 20% - 2% + 1.5 + 0.5 (3.14 - 3.14) + 0.5 (20-0/20)
= 20.15%.
Real interest rate in scenario C = 20% - 2% + 1.5 + 0.75 (3.14-3.14) + 0.25 (20-0/20) = 18.78%.
The new policy rule has changed the weight of the output gap in the Taylor Rule from 0.5 to 0.25.
For more related questions on inflation gap:
https://brainly.com/question/31419643
#SPJ8
Benjamin Took a $500 loan from Village Bank to start up his company website he plans on paying it back by paying $75 each month which equation represents the total amount of money he owes the bank y based on the number of months x he has been paying back the loan
Jen borrows $4,000 from her bank. She has a simple interest loan at a 5% interest rate and will pay it back over 4 years. How much interest will she pay on this loan?
Answer:
depends on how much she pays per month, anywhere from $16.67-$583,179.69
What is the compound interest on investing $600 for 3 years at 7% per annum?
Answer:
After investing for 3 years at 7% interest, your $600 investment will have grown to $735.03
A human head weighs 160 ounces. What is that weight in kilograms? Analyze the work below.
1 pound = 16 ounces. 1,000 grams = 1 kilogram. 1 kilogram = 2.2 pounds.
Student’s work:
StartFraction 160 ounces Over 1 EndFraction times StartFraction 16 pounds Over 1 ounce EndFraction times StartFraction 1 kilogram Over 2.2 pounds EndFraction almost-equals 1,163.6
What is the student’s error?
The human head weighs 160 ounces which is equivalent to 100/22 kilograms
What is an equation?An equation is an expression that shows the relationship between two or more numbers and variables.
An independent variable is a variable that does not depend on other variables while a dependent variable is a variable that depends on other variables.
1 pound = 16 ounces
Hence:
160 ounces = 160 ounces * 1 pound per 16 ounces = 10 pounds.
1 kilogram = 2.2 pounds
Hence:
10 pounds = 10 pounds * 1 kilogram per 2.2 pounds = 100/22 kilograms
The human head weighs 160 ounces which is equivalent to 100/22 kilograms
Find out more on equation at: https://brainly.com/question/2972832
#SPJ1
Write the following expression in simplest form.
the expression quantity negative three fifths times x minus 7 end quantity minus quantity negative 12 plus three tenths times x end quantity
negative nine tenths times x plus 5
negative nine tenths times x plus negative 5
three over 10 times x plus 5
three over 10 times x plus negative 19
The following expression (-3/5)x-7-(-12)+(3/10)x can be written in the simplest form as -3/10x+5( three over 10 times x plus 5). So, option c is correct.
What is meant by an expression?An expression or mathematical expression is a finite arrangement of symbols that are well-formed in line with context-dependent criteria. To help define the logical grammar and order of operations, mathematical symbols can be used to represent variables, operations, functions, brackets, punctuation, and grouping. A sentence qualifies as a mathematical expression if it comprises one or more mathematical operations, at least two numbers, or variables. Mathematicians have the ability to multiply, divide, add, and subtract. The following is the structure of an expression: Expression, number/variable, and mathematical operator.
(-3/5)x-7-(-12)+(3/10)x
-3/5x-7+12+3/10x
-6/10x-7+12+3/10x
-3/10x+5
Three over 10 times x plus 5
Therefore, the following expression (-3/5)x-7-(-12)+(3/10)x can be written in the simplest form as -3/10x+5( three over 10 times x plus 5).
Hence, option c is correct.
To know more about expression, visit:
https://brainly.com/question/1859113
#SPJ1
which graph represents an exponential function
Games sell for $5 each and books for $3 each. If you spent $36 and purchased 8 items, how many games and books did you buy?
Answer: you would get 6 games and 2 books
Step-by-step explanation:
Complete this statement:
40x4a² + 16x²a³ = 8x²a²(
Answer:
5x² + 2a
Step-by-step explanation:
Given :
40x4a² + 16x²a³
Simplifying by given HCF :
8x²a² (5x² + 2a)HURRYY
Write the equation of the line that goes through (-6,2) and (7,-1) using point slope
Answer:
y - 2 = (-3/13)(x-(-6))
or
y - (-1) = (-3/13)(x-7)
Step-by-step explanation:
point slope form is y - y1 = m(x - x1)
slope is m = (y2 -y1)/(x2-x1) = (-1 - 2)/(7 - (-6)) = -3/13
y - 2 = (-3/13)(x-(-6))
or
y - (-1) = (-3/13)(x-7)
Solve for B, please.
Answer:
b = 30
Step-by-step explanation:
You want the value of b given line y = 20x +b passes through the points (6, 150) and (11, 250).
Solve for bThe equation y = 20x +b can be solved for b:
b = y -20x . . . . . . . . subtract 20x
Using the given point (x, y) = (6, 150), you have ...
b = 150 -20(6) = 150 -120
b = 30
A Standard number is
tossed find each
Probability.
P (4 or less than 6)
the probability of rolling 4 or a number less than 6 is P = 5/6
How to find the probability?The standard number cube has the outcomes {1, 2, 3, 4, 5, 6}
We want to find the probability of rolling 4 or a number less than 6. (4 is a number less than 6).
The outcomes that meet that condition are:
{1, 2, 3, 4, 5}
So 5 out of 6 outcomes meet the condition, then the probability is:
P(4 or less than 6) = 5/6
If you want to learn more about probability:
https://brainly.com/question/25870256
#SPJ1
Find the volume of each composite figure to the nearest whole number.
The volume of the composite figure in this problem is given as follows:
76 ft³.
How to obtain the volume of a rectangular prism?The volume of a rectangular prism, with dimensions defined as length, width and height, is given by the multiplication of these three defined dimensions, according to the equation presented as follows:
Volume = length x width x height.
The figure in this problem is composed by two prisms, with dimensions given as follows:
2 ft, 6 ft and 3 ft.2 ft, 4 ft and 8 - 3 = 5 ft.Hence the volume is given as follows:
2 x 6 x 3 + 2 x 4 x 5 = 76 ft³.
A similar problem about the volume of rectangular prisms is presented at brainly.com/question/22070273
#SPJ1
Find the measure of the arc indicated.
Answer:
option 3
hope youre online exam will be easy
Step-by-step explanation:
Write an equation with variables on both sides that would have one solution.
The equation with variables on the both sides that would have one solution is 7x+2 =5x+10
The given condition is "The equation with variables on both sides that would have one solution"
A linear equation in one variable is the equation that has one variable of order one. The general form of the equation is ax+b =0
Where a and b are the integers and x is the variable
The equation with variables on the both sides that would have one solution is 7x+2 = 5x+10
Solve the equation
7x+2 =5x+10
Move the 5x to the left hand side and 2 to the right hand side of the equation
7x-5x = 10-2
Subtract it
2x =8
Move the 2 to right hand side
x =8/2
x = 4
Hence, the equation with variables on the both sides that would have one solution is 7x+2 =5x+10
Learn more about linear equation here
brainly.com/question/13738061
#SPJ1
Please helppppppp thank you so much
Answer:
7 1/8
Step-by-step explanation:
1 1/8 + 1 1/8 is 2 2/8
2 2/8 + 4 7/8 is 6 9/8 = 7 1/8
16) What is the area of a poster that has a length of 4 1/2 feet and a width of 2 1/2 feet?
A) 8 1/4 feet
B) 45/4 feet
C) 11 1/4 feet
D) 18/10 feet
Answer:
C; 11 1/4 feet
Step-by-step explanation:
4.5 x 2.5
4 and 3 half's divided by 2 and 7
halfs minus 8
Answer:
4/3/2/7-8= -7
Step-by-step explanation:
How many zero pairs must be added to the function f(x)=x^2-10x-4
25 must be added to the function in order to begin writing the function in vertex form.
What is Polynomial?A polynomial is a mathematical equation that solely uses the operations addition, subtraction, multiplication, and non-negative integer exponentiation of variables. Variables are sometimes known as indeterminates in mathematics.
Given:
f(x) = x² - 10x - 4
Compare the above function with
f(x) = ax² + bx + c
So, the values are a= 1, b= -10 and c= -4.
As, In order to get the vertex form we must add and subtract
(b/2)² = (-10/2)²
= (-5)²
= 25
So, It implies that in order to start expressing the function in vertex form, 25 must be added to it.
Learn more about Polynomial here:
https://brainly.com/question/2968769
#SPJ1
Proportionality yes or no - show work
X y
____ ____
6 -2
7 -1
8 0
9 1
No, the relationship on the table is not proportional
How to determine if the relationship is proportionalFrom the question, we have the following parameters that can be used in our computation:
x y
____ ____
6 -2
7 -1
8 0
9 1
On the table of values, we can see that:
The values of x increase by 1 i.e. 6, then 7, then 8 and finally 9 As these values of x increase by 1, the values of y increase by 1 also i.e. -2, then -1, then 0 and finally 1Using the above as a guide, we have the following:
The relationship is not a proportional relationship
This is so because it does not have a constant rate (addition of 1 to x and y does not represent proportional relationship)
Read more about proportional relationship at
https://brainly.com/question/14425347
#SPJ1
Write a proportion for the statement.
$118 per week is proportional to $472 per 4 weeks. The proportion is _____?
A proportion is a mathematical comparison between two ratios.
A ratio is a comparison between two numbers.
For instance, the ratio of apples to bananas in a fruit basket is 1 apple to 2 bananas:
\(\dfrac{1\hspace{3}apple}{2\hspace{3}bananas}\)This is proportional to the ratio of apples to bananas in another fruit basket, which is 2 apples to 4 bananas:
\(\dfrac{2\hspace{3}apples}{4\hspace{3}bananas}\)To write a proportion from this information, we can compare the ratios by makign them equal to each other:
\(\dfrac{1\hspace{3}apple}{2\hspace{3}bananas}=\dfrac{2\hspace{3}apples}{4\hspace{3}bananas}\)\(\dfrac{1}{2}=\dfrac{2}{4}\)Solving the QuestionWe're given:
$118 per week$472 per 4 weeksThese are proportional$118 per week is one ratio:
\(\dfrac{118\hspace{3}dollars}{1\hspace{3}week}\)$472 per 4 weeks is another ratio:
\(\dfrac{472\hspace{3}dollars}{4\hspace{3}weeks}\)Now, set them equal to each other to create a proportion:
\(\dfrac{118\hspace{3}dollars}{1\hspace{3}week}=\dfrac{472\hspace{3}dollars}{4\hspace{3}weeks}\\\\\dfrac{118}{1}=\dfrac{472}{4}\)Answer:Therefore, the proportion is \(\dfrac{118}{1}=\dfrac{472}{4}\).
Solve |2x – 3| = 4x Question 18 options: A) x = 1∕2 B) x = –3∕2 or x = 1∕2 C) x = –3∕2 D) No solutions
Answer:
A
Step-by-step explanation:
If x>3/2, 2x-3>0(2x-3)=4x, x=-3/2 which isn't possible as x>3/2
If x<3/2, 2x-3<0-(2x-3)=4x, x=1/2.
Hence the answer is x=1/2
40 POINTS !! 40 POINTS !!
PLEASE HELP , DONT SKIP !
NO LINKS OR FILES.
Answer:
2 0 4 3 1.
Step-by-step explanation:
u mean 10 points
Nicole earned a total of $6 by selling 2 cups of lemonade. After selling a total of 24 cups of lemonade, how much money will Nicole have made in all
She would have made $72
Each cup of lemonade is $3, so 3x24 is 72. Or you could just do 6x12, it's all the same.
3 (x + 7) = -12
x + 7 = ?
x = ?
Find out ? fast
Answer:
×=-11
Step-by-step explanation:
3x+21=-12
3×=-33
×=-11
Answer:
x=-11
x+7=-4
Step-by-step explanation:
3(x+7)=-12
3x+21=-12
3x=-12-21
3x=-33
x=-33/3
x=-11
-11+7=-4
A loan is being paid off by payments of 1,000, 2,000, ..., 10,000 at the end of years 1, 2, ..., 10.
The effective annual interest rate is 18%.
Determine the amount of interest in the 7th payment.
Therefore, the interest portion of the seventh payment is:7,000 x (1 + r + r2 + r3 + r4 + r5 + r6) / r7 - 7,000.
We have the following payments and their corresponding times of payment:At the end of year 1: $1,000At the end of year 2: $2,000At the end of year 3: $3,000At the end of year 4: $4,000At the end of year 5: $5,000At the end of year 6: $6,000At the end of year 7: $7,000
At the end of year 8: $8,000At the end of year 9: $9,000At the end of year 10: $10,000The present value of these payments is:PMT x [(1 - (1 + r)-n) / r]where PMT is the payment, r is the interest rate per year, and n is the number of years till payment.
For the first payment (end of year 1), the present value is:1,000 x [(1 - (1 + r)-1) / r]which equals
1,000 x (1 - 1 / (1 + r)) / r = 1,000 x ((1 + r - 1) / r) = 1,000
For the second payment (end of year 2), the present value is:2,000 x [(1 - (1 + r)-2) / r]which equals 2,000 x (1 - 1 / (1 + r)2) / r = 2,000 x ((1 + r - 1 / (1 + r)2) / r) = 2,000 x (1 + r) / r2
For the seventh payment (end of year 7), the present value is:
7,000 x [(1 - (1 + r)-7) / r]
which equals
7,000 x (1 - 1 / (1 + r)7) / r = 7,000 x ((1 + r - 1 / (1 + r)7) / r) = 7,000 x (1 + r + r2 + r3 + r4 + r5 + r6) / r7
For such more question on corresponding
https://brainly.com/question/11853802
#SPJ8
Martha, Lee, Nancy, Paul, and Armando have all been invited to a dinner party. They arrive randomly, and each person arrives at a different time.
a. In how many ways can they arrive?
b. In how many ways can Martha arrive first and Armando last?
c. Find the probability that Martha will arrive first and Armando last.
Show your work
Answer:
a) 120
b) 6
c) 1/20
Step-by-step explanation:
a) 5! = 120
b) (5 - 2)! = 6
c) 6/120 = 1/20
Leo has 2 5/8 ounces of sunblock.
He uses one third of an ounce at
the beach. How much does he
have left?
Answer:
2 7/24
Step-by-step explanation:
Answer:
Step-by-step explanation: 6
Question 8 (1 point)
A real estate agent received a 5.5% commission on the sale of a home. If her
commission was $14,960, how much did the home sell for?
The amount of the sale of the home is $2090181.82
How to determine how much the home sells for?From the question, we have the following parameters that can be used in our computation:
Commission = 5.5% on the sale of a home
Also, we have
Commission = 114960
using the above as a guide, we have the following:
5.5% on the sale of a home = 114960
So, we have
5.5% * sale of a home = 114960
Divide both sides by 5.5%
sale of a home = 114960/(5.5%)
Evaluate
sale of a home = 2090181.82
Hence, the sale of the home is $2090181.82
Read more about commission at
https://brainly.com/question/26283663
#SPJ1
how many values are in the range 17 to 118?
A- 102
B- 135
C- 100
D- 67.5
Answer:
C- 100 values
Step-by-step explanation:
Answer:
102
Step-by-step explanation:
118-17+1 = 102