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Question - Gwyn Tring, trading as Clickety Clocks, imports and resells clocks. He pays for the costs of delivering the clocks from his supplier in Switzerland to his shop in Wales.
He resells the clocks to other traders throughout the country, paying the costs of carriage for the consignments from his business premises to his customers.
On 1 July 201 5 he had clocks in Inventory valued at $17,000. During the year to 30 June 2016 he purchased more clocks at a cost of $75,000. Carriage inwards amounted to $2,000. Sales for the year were $162,100. Other expenses of the business amounted to $56,000 excluding carriage outwards which cost $2,500. The value of the goods in Inventory at the year-end was $15,400.
Required - Prepare the statement of profit or loss of Clickety Clocks for the year ended 30 June 2016?
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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