which one of these is not used in the fed model to forecast inflation rates the phillips curve t

Step 1: Understand the components of the Fed model. The Fed model typically incorporates various

Which one of these is not used in the fed model to forecast...

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00:01 So here we have an islm model, right? and the first thing is the is curve.

00:07 So the is curve is downward sloping, right? and let's remember that this is a relationship between y and r.

00:13 So this means that as r falls, y goes up, or as r rises, y goes down.

00:22 So the question says, says as an increase in the interest rate leads right this is precisely correct the increase in the interest rate leads to less investment it leads to an appreciation of the exchange rate which leads to less net exports this leads to less demand for goods and services which leads to less output 100 correct for a but we're looking for the incorrect one um lm horizontal so i would say this is incorrect.

00:58 I'm going to come back to it.

00:59 That's my guess, though.

01:03 Under interest rate parity, i determines e.

01:10 This one is 100 % correct, right? if you look at the diagram on the right, you have this relationship between the interest rate and the exchange rate.

01:20 Here's my interest.

01:22 I don't know why it's ipr.

01:23 It should be irp to me.

01:24 But this takes the interest rate.

01:28 Sorry.

01:28 It takes the interest rate and gives you the exchange rate.

01:32 Right.

01:32 That's exactly what this diagram is saying.

01:34 It converts the interest rate into the exchange rate...