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Question - Naylor Company had $155,200 of net income in 2016 when the selling price per unit was $153, the variable costs per unit were $93, and the fixed costs were $572,200. Management expects per unit data and total fixed costs to remain the same in 2017. The president of Naylor Company is under pressure from stockholders to increase net income by $61,400 in 2017.
Compute the number of units sold in 2016.
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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