Question
The Taylor Rule is a guideline for central banks setting
the nominal federal funds rate (iT). If the rule is given by iT=r∗+π+0.5(π−π∗)+0.5(Y−Y∗), where r∗=2%, π∗=2%, and Y is the output gap (as a percentage), what is the target nominal rate if inflation (π) is 4% and the output gap (Y−Y∗) is 2%?Solution
Solution: The Taylor Rule formula is: iT=r∗+π+0.5(π−π∗)+0.5(Y−Y∗) Given values: r∗ (Real equilibrium rate) =2% π∗ (Target inflation rate) =2% π (Actual inflation rate) =4% (Y−Y∗) (Output gap) =2% Substitute the values into the rule: iT=2+4+0.5(4−2)+0.5(2)iT=6+0.5(2)+0.5(2)iT=6+1+1 iT=8%
Which Section of Indian Evidence Act is founded on the doctrine laid down in “Pickard v Sears”?
Section 82 of the Negotiable Instrument Act, 1881 deals with _________.
Central Government departments must consult the CVC in matters involving:
Tort has been derived from the word_______.
Which of the Labour Code was enacted in 2019?
Section 2(20): “Company means a company incorporated under this Act or under any previous company law.” Consider:
(1) This definition covers ...
A mortgages to B a certain field bordering on a river. The field is increased by alluvion. B is:
Adjudicating Authority’s powers and functions are contained under which provision?
The provision as laid down under IPC provides that nothing is an offence which is done by a child under seven years of age is represented by which doctrine
As per Section 4A(1), the Director is appointed by the Central Government on the recommendation of a Committee consisting of:
