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Question - Cash Paid for Operating Expenses
The following information was obtained from Knox Company's income statement for 20-2, balance sheets as of December 31, 20-2 and 20-1, and auxiliary records:
Operating expenses for 20-2 $351,630 Depreciation expense for 20-222,590(Included in operating expenses.)
20-220-1 Supplies and prepayments$9,870 $7,090 Accrued and withheld payroll taxes 3,2404,170
Required - Compute the amount of cash paid for operating expenses in 20-2.
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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