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During the year, Courtney holds two jobs. After aneight-hour day at the first job, she works three hours at thesecond job. On Mondays and Fridays of each week, she returns homefor dinner before going to the second job. On the midweek days(Tuesday through Thursday), she goes directly from the first job tothe second job, stopping along the way for a meal. The mileageinvolved is as follows:
Home to first job 15
First job to second job 20
Home to second job 25
a) Assuming Courtney works 49 weeks during the year, how much of her mileage is deductible?
b) Can Courtney deduct the midweek meals she purchased?Why or why not?
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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