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Question - Assume you've been asked to perform tests of details on a series of sales transactions. The manager on the engagement tells you planning materiality is $1,750,000, and the tolerable misstatement for this procedure is $800,000. From a total population of 2,359 transactions totaling $36,702,820, you draw a sample of 190 observations representing $1,865,674 in sales. In examining the details of each transaction in your sample, you identify a series of misstatements that result in an overstatement of $263,833.
Required - What is the amount of the likely overall misstatement if you project your sample findings to the overall population based on the misstatement per transaction?
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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