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Question: Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $51,300 and at the end of the month was $41,700. The cost of goods manufactured for the month was $274,000. The actual manufacturing overhead cost incurred was $84,800 and the manufacturing overhead cost applied to Work in Process was $79,000. The adjusted cost of goods sold that would appear on the income statement for July is:
a) $283,600
b) $264,400
c) $277,800
d) $289,400
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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