Business

EconomicsQ&A LibraryThe 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 94 million94 million . What is Ionia's output gap? Ionia's output gap: % Inflation is running at 5%5% , 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 discount rate. inflation rate. fed funds 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.Question

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 94 million94 million . What is Ionia's output gap?

Ionia's output gap:

%

Inflation is running at 5%5% , 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

discount rate.

inflation rate.

fed funds 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.

Find answers to questions asked by student like you

Show more Q&A

Q: Julius builds dining chairs that he sells for $200 a chair. His fixed costs are $1,000 (for workshop...

A: Given:P = $200, FC=$1000, VC= $50 + $25.Total cost = FC+ VC*q + 25 (q-1) = 1000 + 50q + 25q- 25TC= 9...

Q: Question is pinned below

A: (A) Milk is a key ingredient for producing cheese. A fall in the price of milk in the market will re...

Q: According to the Australian Wool Innovation, severe drought conditions in Australia contributed to t...

A: We are authorized to answer three subparts at a time, since you have not mentioned which part you ar...

Q: MonopolistRefer to the table. What is the monopolist's profit-maximizing level of output? ...

A: Click to see the answer

Q: Help in deciding the correction answer 1. The Law of diminishing marginal utility explains why a. m...

A: Answer - 1. Solution - For deciding the correct option we will evaluate all the option -a) Most ...

Q: Consider an economy in which the demand for money is of the formMt =(1/v) PtY for t = 0, 1, 2...

A: To determine why the inflation rates differ in the two situations.

Q: The demand schedule below pertains to sandwiches demanded per week. Price Harry’sQuantityDemanded...

A: The slope is defined as the changes in the given variable concerning the y-axis which is divided by ...

Q: What happens to aggregate demand when transfer payments and the taxes to pay them both rise by the s...

A: Click to see the answer

Q: Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B ...

A: Substitute goods are those goods that can be consumed by an individual in place of each other by the...