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Question - Axello established a freight forwarder on October 1, 2021. On December 31, 2021, this company prepared the financial statements by making adjusting entries for several transactions that occurred during the current period.
(a) Workers in this company receive a salary of $50 per day or $200 for a five-day work week. Salaries are paid every two weeks on Fridays. December 31, 2021 falls on a Wednesday and the following salary payments will be paid on January 9, 2022.
(b) On November 1, 2021, the Company received cash amounting to $16,000 for the delivery of goods which will last until the end of February 2022.
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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