Reading 23: Capital Market Expectations- LOS h～ Q1-3 interest, central, following, Taylor

youzizhang

 

LOS h: Demonstrate the use of the Taylor rule to predict central bank behavior.

Q1. Calculate the short-term interest rate target given the following information.

Neutral rate	4.00%
Inflation target	2.00%
Expected Inflation	5.00%
GDP long-term trend	3.00%
Expected GDP	1.00%

 

A)   6.5%.

B)   4.5%.

C)   5.0%.

 

Q2. Calculate the short-term interest rate target given the following information.

Neutral rate	4.00%
Inflation target	2.00%
Expected Inflation	4.00%
GDP long-term trend	3.00%
Expected GDP	5.00%

A)   8%.

B)   5%.

C)   6%.

 

Q3. Which of the following is NOT an input to the Taylor rule?

A)   The expected GDP.

B)   The neutral rate.

C)   The discount rate.

rawrdinosaur

ty

deqiang

thanks.

suodi

[em50]

maxsimax

tq

思霖

Thanks!

leeyaoxee

Thanks.

szg333

c

1212jo

V

jrxx999

踩踩踩踩踩踩踩踩踩踩