) Suppose that monetary policymakers employ the Taylor rule to set the fed funds rate. Assume that the weights on both the inflation and output gaps are 0.5, the equilibrium real fed funds rate is 2%, the inflation rate target is 2%, and the output gap is 1%. Suppose half of Fed economists forecast inflation to be 3%, and half of Fed economists forecast inflation to be 5%. If the Fed uses the average of these two forecasts as its measure of inflation, then at what target should the fed funds rate be set according to the Taylor rule

Case 1. Federal funds rate target is 9%

Case 2. Federal funds rate target is 9%

Explanation:

As we know that:

Federal funds rate target = Inflation rate + Equation real fed funds rate +

1/2 * Inflation Gap    +     1/2 * (Output Gap)

Here

Equation real fed funds rate is 2%

Output Gap is 1%

Case 1. Inflation rate target is 3%

So

Inflation Gap = 3%  -  2% = 1%

So by putting values, we have:

Federal funds rate target = 3% + 2% + 1/2 * (1%) + 1/2 * (1%)

= 6%

Case 2. Inflation rate target is 5%

So

Inflation Gap = 5%  -  2% = 3%

So by putting values, we have:

Federal funds rate target = 5% + 2% + 1/2 * (3%) + 1/2 * (1%)

= 9%

The Federal Reserve seeks to control inflation by influencing interest rates. When inflation is too high, the Federal Reserve typically raises interest rates to slow the economy and bring inflation down.

Explanation:

answer: qué lástima, pero no podré ir.

explanation: the expression "qué lástima" means "what a pity" and indicates disgust, because she would like to go but she can't go.

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two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.