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Question - Megn Corporation had beginning total liabilities of $40,OOO and ending total liabilities of $60,000. The beginning balance in stockholders' equity was $50,000. During the year, total assets increased $35,000. In addition, capital stock of $1O,000 was issued and dividends of $5,000 were declared and paid. How much was Mega's net income for the year? HINT: Use changes in the accounting equation to answer this problem.
a. $20,000
b. $15,000
c. $10,000
d. $5,000
e. None of these
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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