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Question - Sarah Hunt works for Monarch Construction in Alberta and earns an annual salary of $53,000.00 paid on a weekly basis. The company provides its employees with group term life insurance coverage of two times annual salary and pays a monthly premium of $0.68 per $1,000.00 of coverage. Sarah uses her car to meet with clients on company business and receives a taxable car allowance of $50.00 per pay. The company has a defined contribution pension plan to which Sarah contributes 5% of her salary each pay.
Sarah also contributes $15.00 to United Way and has $4.00 deducted for her social club membership each pay. She belongs to the union and pays 4% of her salary in union dues per pay period. Sarah's federal and provincial TD1 claim codes are 1. She will not reach the Canada Pension Plan or Employment Insurance annual maximums this pay period.
Required - Calculate the employee's net pay, following the order of the steps in the net pay template.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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