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Question - The partnership of Perez and Reyes was formed on March 31, 2019. At that date, Perez invested P50,000 cash and office equipment valued at P30,000. Reyes invested P70,000 cash, merchandise valued at P110,000, and furniture valued at P100,000, subject to a notes payable of P50,000 (which the partnership assumes). The partnership provides that Perez and Reyes share profits and losses 25:75, respectively. The agreement further provides that the partners should initially have, an equal interest in the partnership capital. Under the goodwill method, what is the total capital of the partners after the formation?
a. 310,000
b. 510,000
c. 390,000
d. 460,000
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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