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Question - Maria has an annual contract with Morneau Insurance Company to provide property maintenance services; this includes lawn care, snow removal and parking lot maintenance. Maria spends, on average, 20 hours per week working at the company's premises and is paid a flat amount monthly. She hires part-time workers, when necessary, to assist her. Maria does not have any other clients.
Maria uses her own small tools; however, the company supplies and maintains a riding lawn mower and a snow plow for her use. Her contact at the company is Paul Lane, the Facilities Manager, who meets with her every Monday to discuss the work to be done that week. Paul approves Maria's monthly invoices and submits them to Accounts Payable.
Does Maria have a contract of service or a contract for service with Morneau Insurance Company? As the company's Payroll Manager, write a letter to Paul explaining the process and factors you used to make your decision.
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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