Suppose the economy is thought to be 1 percent below potential (i. e., the output gap is -1 percent), when potential output grows 2.5 percent per year. Suppose the Fed is following the Taylor rule, with an inflation rate of 1.5 percent over the past year. The federal funds rate is currently 4 percent. The equilibrium long-run real interest rate is 2 percent and the weights on the output gap and inflation gap are 0.8 and 0.2 respectively. The inflation target is 2 percent. Is the fed funds rate currently too high or too low

R& m chatelaine is one of the largest tax-preparation firms in the united states. it wants to acquire the tax experts, a smaller rival. after the merger, chatelaine will be one of the two largest income-tax preparers in the u.s. market. what should chatelaine include in its acquisition plans? it should refocus its attention from the national to the international market. in addition to acquiring the tax experts, it should also determine the best way to drive independent "mom and pop" tax preparers out of business. chatelaine will need to explain to the federal trade commission how the acquisition will not result in an increase in prices for consumers. chatelaine should enter a price-based competition with its other major competitor to force it out of business and become a monopoly.