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Question - Mrs. Doyle, a resident of Rhode Island, traveled to Delaware to purchase an oil painting from a local artist. The cost of the painting was $9,400. Rhode Island has a 7 per- cent sales and use tax, while Delaware has no sales and use tax.
a. How much Rhode Island use tax does Mrs. Doyle owe on the purchase she made in Delaware?
b. How much Rhode Island use tax would Mrs. Doyle owe if she purchased the painting from a gallery in New York City and paid 8.75 percent state and local sales tax on the transaction?
c. How much Rhode Island use tax would Mrs. Doyle owe if she purchased the painting from a dealer in Milwaukee and paid Wisconsin's 5 percent sales tax on the transaction?
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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