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Question - Manda was sent by his manager for a two (2) day official business in Davao. He was given P5,000 to answer for whatever expenses he will incur in connection with his travel. When he returned back to Gensan he liquidated the following expenses:
Bus fare (gensan to davao and back) P1,000
Hotel accommodation 2,000
Meals 1,500
One night outing with his friends in Davao 500
Total 5,000
The day after his arrival, he had a flu and was forced to go on leave for 2 weeks. Despite his absence, he was paid a complete salary and other allowances for that month in the amount of P13,000.
Required - Based on the above information, discuss the computation in getting the income is subject to tax.
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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