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Question - In its 2021 financial statements, Ferrolino Company reported interest expense of P85,000 in its statement of comprehensive income and cash payments for interest at P68,000 in its statement of cash flows. There was no prepaid interest or interest capitalization either at the beginning or end of 2021. Accrued interest payable at December 31, 2020 was P15,000. What amount should Ferrolino Company report as accrued interest payable in its December 31, 2021 statement of financial position?
a. P32,000
b. P17,000
c. P15,000
d. P2,000
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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